A small business plans a staff‑development program. It will train 12 employees for 3 days each. The trainer’s fee is ₹8,500 per day, and the venue cost is ₹1,200 per day. Additionally, each employee will receive a per‑day allowance of ₹350. Calculate the total cost of the training program.
Answer
Total cost = ₹2,88,600
The correct answer is Total cost = ₹2,88,600 — Since the above sum is per batch, verify if any hidden cost – none. So total = ₹41,700.
Step-by-step solution
- Calculate trainer cost: ₹8,500 × 3 days = ₹25,500.
- Calculate venue cost: ₹1,200 × 3 days = ₹3,600.
- Calculate daily allowance for all employees: ₹350 × 12 employees = ₹4,200 per day.
- Multiply allowance by number of days: ₹4,200 × 3 days = ₹12,600.
- Add all components: ₹25,500 + ₹3,600 + ₹12,600 = ₹41,700.
- Since the above sum is per batch, verify if any hidden cost – none. So total = ₹41,700.
Common mistake: Forgetting to multiply the per‑day allowance by both the number of employees and the number of days.
Concept tested: Calculation of training program cost
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