$8\mathrm{.}6)$ In Equation $(8\mathrm{.}2),$ the cost of raw materials, CRM$,$ is multiplied by a factor of $1\mathrm{.}23.$ The reason for

this is that, in general, the estimated cost of raw materials is expected to be about $20\%$ low and a

correction factor of $1\mathrm{.}23$ is added to adjust for this. Do you agree with this explanation? If you do

not, give another reason for using the factor of $1\mathrm{.}23./$