A manufacturer undertakes to supply 2000 pieces of a particular component at rs.25/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

• 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(17) No(3)
• 5% of 2000 pieces= 100 pieces; thus, 1900 pieces sold
  
  cost : 1900*25= rs. 47500
  
  original production cost : 25% of x= 47500
  x= 47500/1.25= 38000 rs
  
  Sale according to 50% loss:
  50% of 2000= 50/100*2000=1000
  
  sale= 1000*25 = rs.25000
  
  So, loss = 38000-25000 = 13000
• 9 years agoHelpfull: Yes(0) No(0)
• sold 2000 pieces at 25/piece... so estimated SP=50000
  IF 5% fail therefore 1900 units are sold.. so SP of 1900 units= 25*1900=Rs 47500
  And he makes a 25% profit so CP of 1900 units = (100/125)*47500 = Rs 38000
  CP of 2000units (unitary method)= Rs 40000
  50% rejected , so he gets (1000 * 25=25000) Rs 25000 instead of Rs 50000
  So Loss= CP-SP= 40000-25000= Rs 15000 (ANS D)
• 9 years agoHelpfull: Yes(0) No(0)