10. 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

• he estimates 5% would be rejected. so rejected (2000*.05)
  so the selling price(1900*25)
  so cost price(125% profit)=38000
  and when the 50% rejected. the selling price= 25000
  so loss=13000
• 13 years agoHelpfull: Yes(13) No(1)
• Let manufacturing price for each piece = x Rs.
  Therefore manufacturing price for 2000 pieces = 2000x Rs.
  
  now, 5% of components fails therefore remaining pieces are = 2000 - 5% of 2000=2000-100=1900
  so, selling price of 1900 pieces = (25*1900) Rs. = 47500 Rs. , which gives the profit of 25%
  
  Hence,
  2000x + 25% of 2000x = 47500
  solving we get x=19 i,e manufacturing price of each piece is 19Rs.
  Therefore, manufacturing price of 2000 pieces = 2000*19 = 38000Rs.
  
  now when 50% of the components are rejected, the remaining components are 2000-50% of 2000 = 1000
  so, selling price of 1000 pieces = 25*1000 = 25000Rs
  
  Therefore loss= manufacturing price - selling price = 38000 - 25000 = 13000 Rs
  
  so, ans is b)13000
• 12 years agoHelpfull: Yes(6) No(0)
• Rs.13000
• 13 years agoHelpfull: Yes(2) No(2)
• 13000
• 13 years agoHelpfull: Yes(1) No(4)