Question

A manufacturer obtains a contract 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, he will still 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.12,000
• B. Rs.13,000
• C. Rs.14,000
• D. Rs.15,000
• E. Rs.16,000

Answer 1

The correct option is B

Rs.13,000

C.P = Rs. $\left[\frac{100}{125}\times 25\times \left(95\%of2000\right)\right]$

= Rs. $\left(\frac{100}{125}\times 25\times 1900\right)$ = Rs. 38000.

$S.P=25\times \left(50\%of2000\right)=25\times 1000=Rs.25000$

$\therefore Loss=Rs.13000$