In a manufacturing unit, it was noted that the price of raw material has increased by 25% and the labor cost has gone up from 30% of the cost of raw material to 38% of the cost of the raw material. What percentage of the consumption of raw material be reduced to keep the cost the same as that before the increase?

A. 20.7%

B. 30.2%

C. 24.6%

D. 25.5%

Answer: Option C

Solution(By Examveda Team)

Raw material → 25% increase