Question

If the average cost of setting up a new textiles unit is Rs. $15$ lakh while maintaining an existing unit is Rs. $2$ lakh, what was the average expenditure of textiles unit in the year $1993$ given that the number of textile units in $1992$ was $645$ and in $1993$ was $670$?

Accepted Answer

D. Number of new units setup in $1993 = 670 - 645 = 25$. Number of existing units maintained $= 645$. Total expenditure in $1993 = (25 	imes 15) + (645 	imes 2) = 375 + 1290 = 1665$ lakh. Average expenditure per unit in $1993 = \frac{1665}{670} \approx 2.485$ lakh $\approx$ Rs. $2.5$ lakh.

Average Expenditure Calculation

Explanation

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