Manufacture 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?
Solution
Correct Answer: Option B
5% of 2000=100 so 2000-100=1900 so, if he sells 1900 he will get 25% profit
cost per piece rs 25……so 25x 1900 don’t solve here
if 125%…………………..25×1900
100 %………………….?
?= 25x1900x100/125=38000=CP
if 50% rejected,only 1000 pieces sold
so 1000×25=25000=SP
loss=cp-sp= 38000-25000=13000
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