Answer the questions based on the following information. In the following chart, the price of logs shown is per cubic metre that of plywood and saw timber is per tonne.
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If the volume sales of plywood, saw timber and logs were 40%, 30% and 30% respectively, then what was the average realisation in 1993 per cubic metre of sales? (Weight of one cubic metre of saw dust and plywood both = 800 kg)
In 1993, price of logs = Rs. 20 per cubic metre.
volume sales of plywood, saw timber and logs were 40%, 30% and 30%Â
In 1993, price of plywood = Rs. 7 per tonne
In 1993, price of plywood = Rs. 20 per tonne
Weight of one cubic metre of saw dust and plywood both = 800 kg
1 tonne=1000kg
Price of 1000kg of plywood= Rs 7
Price of 800kg( 1 m$$^3$$)= 7 x 0.8 =Â Rs 5.6 per cubic metre.Â
Price of saw timber = 20 x 0.8 = Rs 16 per cubic metre.
We know that the sales volume of plywood, saw timber and logs are in the ratio 4 : 3 : 3.
Thus, the average realization must be the weighted avg of these three-
$$\frac{(4\times 5.6)+(3 \times 16)+(3 \times 20)}{4+3+3}$$
=13.1
= Rs. 13 (Approximately)
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