Question
A company produces two types of products, A and
B. The production cost per unit for product A is ₹600 and for product B is ₹800. The company produced 3,000 units of A and 2,000 units of
B. It sells 80% of the total production at a profit of 25% and the remaining at a loss of 10%. What is the overall profit or loss percentage?
Solution
Total cost for A = ₹600 × 3,000 = ₹18,00,000. Total cost for B = ₹800 × 2,000 = ₹16,00,000. Total cost = ₹18,00,000 + ₹16,00,000 = ₹34,00,000. Selling price of 80% at 25% profit: 80% of production = (80/100) × 5,000 = 4,000 units. Cost of 4,000 units = ₹34,00,000 × (4,000 / 5,000) = ₹27,20,000. Selling price = ₹27,20,000 × 1.25 = ₹34,00,000. Selling price of 20% at 10% loss: 20% of production = 1,000 units. Cost of 1,000 units = ₹34,00,000 × (1,000 / 5,000) = ₹6,80,000. Selling price = ₹6,80,000 × 0.90 = ₹6,12,000. Total selling price = ₹34,00,000 + ₹6,12,000 = ₹40,12,000. Profit = ₹40,12,000 - ₹34,00,000 = ₹6,12,000. Profit percentage = (₹6,12,000 / ₹34,00,000) × 100 = 18%. Correct option: b
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