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    Question

    Find the cost of manufacturing each article if a

    manufacturer estimates that on inspection 22% of the articles he produces will be rejected. He accepts an order to supply 84,000 articles at Rs. 4.5 each. He estimates the profit on his outlay including the manufacturing of rejected articles to be 17%.
    A Rs 5 Correct Answer Incorrect Answer
    B Rs 3 Correct Answer Incorrect Answer
    C Rs 4.10 Correct Answer Incorrect Answer
    D Rs 4.30 Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    If 100 articles are manufactured then 22 will be rejected
    Total selling price of 78 articles = 78 × 4.5 = 351
    Total cost price = (351 x 100)/117 = 300
    cost of manufacturing per article = 300/100 = Rs 3

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