Question

A company makes toy cars at a production cost of Rs 17.50 per unit. A market survey reveals that 10% of the product will be lost, 5% will be rejected, 5% will decay and 5% will be stolen. At what unit price must the company sell it to realize 28% profit ?
A. Rs. 29.86
B. Rs. 28
C. Rs. 31.70
D. Rs. 20.5

Answer 1

Answer:

A company makes toy cars at a production cost of Rs 17.50 per unit. A market survey reveals that 10% of the product will be lost, 5% will be rejected, 5% will decay and 5% will be stolen.

to realize 28% profit company must sell at Rs. 29.86 unit price

Step-by-step explanation:

Toys Car production cost = Rs 17.5 per unit

Let say company make Toys = 100T

Then production cost = 100T * 17.5  = Rs 1750T

28 % profit  = (28/100) * 1750T = 490T

Selling Price = 1750T + 490T = 2240T

10% Lost , 5 % rejected , 5 % decay & 5% stolen

Toys available to sell = 100T - 10T - 5T - 5T - 5T = 75T

Selling Price per Toy =  2240T/75T = 29.86

option A is correct answer