📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!
  • google app store apple app store
    • âś–

      Question

      Find the cost of manufacturing each article if a

      manufacturer estimates that on inspection 14% of the articles he produces will be rejected. He accepts an order to supply 90,000 articles at Rs. 6.6 each. He estimates the profit on his outlay including the manufacturing of rejected articles to be 20%.
      A Rs 4.73 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 14 will be rejected
      Total selling price of 86 articles = 86 × 6.6 = 567.6
      Total cost price = (567.6 x 100)/120 = 473
      cost of manufacturing per article = 473/100 = Rs 4.73

      Practice Next
      More Profit and loss Questions
      ask-question