Directions : These questions are based on the information given below:
In manufacturing a certain item, 40% of the expenditure is on account of raw materials 20% on account of labour charges, 20% on account to fixed charges and the rest on miscellaneous. The item is solid at a profit of 25%. The price of the raw materials went up by 15% and the labour charges went up by 20% and the cost on the miscellaneous heads went up by 50% while the fixed costs remained unchanged.
If the manufacturer wants a `13 (7)/(11)%` profit, then by what percentage should he reduce his expenditure on raw materials (at the increased price) as to achieve that target, the selling price remaining the same?

Options

A. `17 (17)/(23)%`
B. `20(14)/(23)%`
C. `21(17)/(23)%`
D. `24(14)/(23)%`

Answer

C