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    Question

    A company inputs 300 units into a production process

    where the normal loss is 30%. If the actual output is 190 units, what is the amount of abnormal gain or loss?
    A Abnormal gain of 20 units Correct Answer Incorrect Answer
    B Abnormal gain of 30 units Correct Answer Incorrect Answer
    C No abnormal gain or loss Correct Answer Incorrect Answer
    D Abnormal loss of 20 units Correct Answer Incorrect Answer
    E Abnormal loss of 10 units Correct Answer Incorrect Answer

    Solution

    The normal loss is 30% of 300 units, which equals 90 units. Therefore, the expected output after accounting for a normal loss is 210 units (300 - 90). Since the actual output is 190 units, there is an abnormal loss of 20 units (210 expected units - 190 actual units).

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