Question
A manufacture undertakes 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, 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 manufacture?
Answer: Option B
 - Total cost incurred = Rs.[100/125 x 25 x (95%of 2000) ]
Rs.(100/125 x 25 x 1900)= Rs.38000
Loss to the manufacture = Rs [35000-(25 x 1000)]- Rs. 13000
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 - Total cost incurred = Rs.[100/125 x 25 x (95%of 2000) ]
Rs.(100/125 x 25 x 1900)= Rs.38000
Loss to the manufacture = Rs [35000-(25 x 1000)]- Rs. 13000
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