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Average Expenditure Calculation

MAT 2018 · Mathematical Skills · Medium · Averages

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If the average cost of setting up a new textiles unit is Rs. 1515 lakh while maintaining an existing unit is Rs. 22 lakh, what was the average expenditure of textiles unit in the year 19931993 given that the number of textile units in 19921992 was 645645 and in 19931993 was 670670?

  1. A.

    Rs. 1.94 lakh

  2. B.

    Rs. 23 lakh

  3. C.

    Rs. 11.45 lakh

  4. D.

    Rs. 2.5 lakh

Answer

D

Explanation

Number of new units setup in 1993=670−645=251993 = 670 - 645 = 25. Number of existing units maintained =645= 645.

Total expenditure in 1993=(25×15)+(645×2)=375+1290=16651993 = (25 \times 15) + (645 \times 2) = 375 + 1290 = 1665 lakh. Average expenditure per unit in 1993=1665670≈2.4851993 = \frac{1665}{670} \approx 2.485 lakh ≈\approx Rs. 2.52.5 lakh.

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