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Question

A manufacturer undertakes to supply 2000 pieces of 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. 12,000
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B
Rs. 13,000
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C
Rs. 14,000
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D
Rs. 15,000
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Solution

The correct option is B Rs. 13,000
Total number of component =2000
If 15% component found to be defective, then,
No. of non-defective component =20005% of 2000=1900
So, selling price of 190 component =1900×25=47500
This content 25% profit of the manufacturer.
Let total manufacturing price of the component =x
SP =47500
x+25% of x=47500
(100x+25x)100=47500
125x=4750000
x= Rs. 38000
If 50 component i.e. 1000 components are defective. then
Total collection =25×1000=25000
Loss =3800025000= Rs. 13000

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