Question

A manufacturer undertakes to supply $4000$ pieces of particular component at Rs. $100$ per piece. According to his estimates, even if $10$% fail to pass the quality tests, then he will make a profit of $20$%. However, as it turned out, $50$% of the components were rejected. What is the loss to the manufacturer ?

• A. Rs. $120,000$
• B. Rs. $100,000$
• C. Rs. $72,000$
• D. Rs. $80,000$

Answer 1

The correct option is B Rs. $100,000$

Total pieces $=4000$, Price of each$=100$

Given if $10$% fail, he will still make $20$% profit

$\Rightarrow (90$% of $4000)\times SP=CP+\frac{20}{100}CP$

$\Rightarrow \frac{90}{100}\times 4000\times 100=CP\times \frac{120}{100}$

$\Rightarrow CP=3,00,000$

C.P we got is for total $4000$ pieces

$\Rightarrow$C.P of each piece$=\frac{300000}{4000}=75$

But only $50$% i.e., $2000$ pieces were accepted

$S.P=2000\times 100=2,00,000$

Profit or Loss=S.P-C.P$=200000-300000$

$=-100000$ (Loss)

$\therefore$ The manufacturer is at a loss of Rs.$1,00,000$