Hi Sir, I have an issue to understand how to work with waste percentage. I am working on an exercise mentioning: “Leather costs $10 per meter and 2m are needed to complete a chair although 20% of all leather is wasted in the assembly process”.
I am trying to calculate the cost of leather per chair. My reasonning and answer was: we use 2m per chair but 20% goes to waste so we actually need 2m*1.2 = 2.4m per chair. Cost = $10*2.4 = $24.
But the answer is 2m * $10 *100/80 = $25. I do not understand the ” *100/80 “. Could you please explain? Many thanks, Anne