400 units were introduced in a process in which 40 units

Solution

To find out if there's any abnormal loss or gain, we compare the actual output with the expected output (excluding normal loss). Expected output (excluding normal loss) = Total units introduced - Normal loss Expected output = 400 units - 40 units = 360 units Actual output is given as 300 units. Since the actual output (300 units) is less than the expected output (360 units), there is a shortfall of 60 units. This shortfall of 60 units represents abnormal loss because it is beyond the normal loss of 40 units.