Shortcut Trick
Net percentage increase can be quickly calculated using the weighted average method:
Net % Increase = (Sum of ratio parts × respective % increase) ÷ (Total ratio parts)
⇒ Net % Increase = (12 × 50% + 8 × 25% + 5 × 40%) ÷ (12 + 8 + 5)
⇒ Net % Increase = (600 + 200 + 200) ÷ 25
⇒ Net % Increase = 1000 ÷ 25 = 40%
∴ The correct answer is 40%.
Alternate Method
Given:
Ratio of initial expenses on wheat, vegetables, and oil = 12 : 8 : 5
Price increase for wheat = 50%
Price increase for vegetables = 25%
Price increase for oil = 40%
Assumed Base Increase Wheat 120 +60 (50%) Veg 80 +20 (25%) Oil 50 +20 (40%) Total % Increase = 100 ÷ 250 × 100 = 40%
Calculations:
To make calculations easier, let us multiply the ratio parts by 10.
Let the initial expenses on wheat, vegetables, and oil be 120, 80, and 50 respectively.
⇒ Total initial expense = 120 + 80 + 50 = 250
After the respective price increases, the new expenses are:
⇒ New expense on wheat = 120 + (50% of 120) = 120 + 60 = 180
⇒ New expense on vegetables = 80 + (25% of 80) = 80 + 20 = 100
⇒ New expense on oil = 50 + (40% of 50) = 50 + 20 = 70
⇒ Total new expense = 180 + 100 + 70 = 350
⇒ Total increase in expenses = 350 − 250 = 100
⇒ Overall percentage increase = (Total Increase ÷ Initial Total Expense) × 100
⇒ Overall percentage increase = (100 ÷ 250) × 100 = 40%
∴ The correct answer is 40%.
Additional Information
Weighted Average Method
When different parts of a total undergo independent percentage changes, the overall change can be found directly using: Average % = (w1x1 + w2x2 + ... + wnxn) ÷ (w1 + w2 + ... + wn). This saves calculation time during exams.
Base Value in Percentages
Percentage change always depends entirely on the initial base value. Formula: % Change = (Final Value − Initial Value) ÷ Initial Value × 100.
Ratio Simplification Trick
Instead of strictly using 'x' variables (like 12x, 8x, 5x) for ratios in percentage problems, assuming real numeric values by multiplying the ratio terms by 10 or 100 keeps calculations free of decimals and complex variables.