Subject: General Aptitude · Chapter: Profit and Loss · Exam: 2003 · Marks: · Difficulty:
A manufacturer undertakes to supply 2000 pieces of a particular component at ₹ 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)₹ 12,000
(b)₹ 13,000
(c)₹ 14,000
(d)₹ 15,000
Answer
Answer (as printed): B
Explanation
Total cost incurred $=₹\left[\frac{100}{125} \times 25 \times(95 \%\right.$ of 2000) $]$ $=₹\left(\frac{100}{125} \times 25 \times 1900\right)=₹ 38000$. Loss to the manufacturer $=₹$ [38000 $-(25 \times 1000)$ ] = ₹ 13000.
Explanation as extracted from the printed page; notation may be imperfect.