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Calculate the percentage increase in total variable cost

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Question - Company A has 50% of its total variable manufacturing cost in labor and the other 50% in fuel. Company B has 40% of its total variable manufacturing cost in labor and the remainder in fuel. Suppose in a given year labor costs rise 12% and fuel costs rise 15%. Using the information above, calculate the percentage increase in total variable cost for each company.

Reference no: EM133045888

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