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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?
(a) Rs.12000 (b) Rs.13000 (c) Rs.14000 (d) Rs.15000

Read Solution (Total 1)

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
13 years agoHelpfull: Yes(2) No(0)

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