A company produces three types of products: A, B, and C.

Solution

Find the number of products of each type in the current month. Total production = 18,000 products. Type A production = 40% of 18,000 = 0.40 × 18,000 = 7,200 products. Type B production = 25% more than type A = 7,200 + 0.25 × 7,200 = 7,200 + 1,800 = 9,000 products. Type C production = Remaining products = 18,000 - (7,200 + 9,000) = 18,000 - 16,200 = 1,800 products. Now Find the production of each type in the next month. Type A production increases by 20%, so the new production of type A = 7,200 + 0.20 × 7,200 = 7,200 + 1,440 = 8,640 products. Type B production decreases by 10%, so the new production of type B = 9,000 - 0.10 × 9,000 = 9,000 - 900 = 8,100 products. Type C production remains the same, so the production of type C = 1,800 products. Find the total production in the next month. Total production in the next month = 8,640 + 8,100 + 1,800 = 18,540 products. Step 4: Find the percentage increase in total production. Percentage increase = [(Total production in next month - Total production in current month) /  Total production in current month] × 100 Percentage increase = [(18,540 - 18,000) / 18,000] × 100 Percentage increase = (540 / 18,000) × 100 = 3%. Correct Option: c