A manufacturer undertakes to supply pieces of a particular component at per piece. According to his estimates, even if components fail to pass the quality test, then he will make a profit of . However, as it turned out, of the components were rejected. Then what is the loss to the manufacturer?
- A₹ 24,000
- B₹ 26,000
- C₹ 28,000
- D₹ 30,000
Solution & Step-by-step Explanation
Let's find the total cost of production first based on the estimation:
* Total components = pieces
* Selling price per component =
If fail, then the accepted components are:
Total revenue earned from selling these pieces:
At this revenue, the profit is estimated to be . We can find the Total Cost Price (CP) of producing all pieces:
Now, let's look at the actual scenario:
* of the components were rejected, so accepted components =
* Actual revenue earned from selling pieces =
The manufacturer's loss is the difference between total cost price and actual revenue earned:
* Total components = pieces
* Selling price per component =
If fail, then the accepted components are:
Total revenue earned from selling these pieces:
At this revenue, the profit is estimated to be . We can find the Total Cost Price (CP) of producing all pieces:
Now, let's look at the actual scenario:
* of the components were rejected, so accepted components =
* Actual revenue earned from selling pieces =
The manufacturer's loss is the difference between total cost price and actual revenue earned: