Question

A factory produces an average of one defective unit after every 10 good units. The cost of
producing one unit is Rs. 12. The defective unit also costs Rs.12 but is sold as scrap for Rs.2. The
selling price of the good units if the manufacturer wants to earn a profit of 20% of total sales is:
A.
C.
Rs.15.2
Rs.16.4
B.
D.
Rs.16.2
Rs.16.3​

Answer 1

If factory produce 11 unit then 1 unit from 11 unig is defective therefore,

1unit price= Rs 12

11 unit price=Rs 11×12

then 20% profit is

11×12 ×20/100=132/5=>Rs 26.4

The 20% profit of manufacturer from total sales is 132+26.4=158.4 .

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