Query.

Dear Chris, How are you? I hope you are well and safe, first of all i would like to ask you a question outside FR7 paper i hope if you could help me please, the question says The material cost for the product is estimated to be $16 before allowing for additional materials to allow for shrinkage of 20% (for every 10 kg of material going in only 8 kg comes out). how much is the amount of the material shrinkage? SOLUTION total amount of material shrinkage = $16 * 20% = $3.2 Is my answer correct or not and why? Could you explain in details,please? Thank you in advance.