If $10 %$ of the units of Kawasaki do not pass the Quality Test, how many more units of Kawasaki should be produced for the model to break even ?

2073

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2303

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7598

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8441

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Solution

The correct option is B 2303
$\begin{matrix} M o d e l & P r o j e c t C o s t (c r o r e s) & S e l l i n g p r i c e & N u m b e r o f u n i t s s o l d t o b r e a k e v e n (x) B a j a j & 105 & 58968 & 17807 H o n d a & 140 & 83160 & 16836 Y a m a h a & 210 & 123552 & 16997 K a w a s a k i & 280 & 135135 & 20721 D u c a t i & 420 & 168168 & 24976 \end{matrix}$

Accoring to the question, for every 100 units produced, 90 are sold.
Therefore, to sell 20721 units, $\frac{20721 \times 100}{90} = 23024$ units must be produced.

Therefore, an additional 2303 units must be produced.

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If 10% of the units of Kawasaki do not pass the Quality Test, how many more units of Kawasaki should be produced for the model to break even ?

If $10 %$ of the units of Kawasaki do not pass the Quality Test, how many more units of Kawasaki should be produced for the model to break even ?