The budget for a construction project is allocated to land acquisition,…
2025
The budget for a construction project is allocated to land acquisition, building materials, and labor in the
ratio 5 : 3 : 2. During the project, the cost of land acquisition rose by 5%, building materials rose by 10%, and
labor fell by 20%. What is the percent change (increase or decrease) in the total project cost?
- A.
1.0% increase
- B.
1.5% decrease
- C.
1.5% increase
- D.
2.0% decrease
Attempted by 13 students.
Show answer & explanation
Correct answer: C
Use the ratio 5 : 3 : 2 as costs. New total = 5 x 1.05 + 3 x 1.10 + 2 x 0.80 = 5.25 + 3.30 + 1.60 = 10.15. Original total was 10, so the increase is 1.5%.