A discussion on the ratio of labor costs

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Reference no: EM1341070

A Discussion On The Ratio Of Labor Costs

If the ratio of labor costs to materials costs is ½ and labor costs are decreasing by 10 percent per year while material costs are increasing by 10 percent per year, what is the ratio at the end of the second year? (Note: This means that at the present time labor costs are 50 percent of materials costs.) Does the result seem reasonable?

Reference no: EM1341070

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