A manufacturer undertakes to supply 2000 pieces of a particular component at Rs.25 per piece.
A manufacturer undertakes to supply 2000 pieces of a particular component at Rs.25 per piece. According to his estimates, even if 5% fail to pass the quality tests, then he will make a profit of 25%. However, as it turned out, 50% of the components were rejected. What is the loss to the manufacturer?
Answer/Solution
Rs.13000
Steps/Work
Sale according to 5% loss = 1900*25 = 47500
original production cost = 47500/1.25 = 38000
Sale according to 50% loss = 10000* 25 = 25000
so loss = 38000-25000 = 13000
ANSWER:B
original production cost = 47500/1.25 = 38000
Sale according to 50% loss = 10000* 25 = 25000
so loss = 38000-25000 = 13000
ANSWER:B