Question

A textile company has 20 machines. The annual aggregate output produced by these machines is

Rs. 200,000. Annually, the company pays Rs. 20,000 for raw material and Rs. 100,000 as

infrastructure costs. The company pays 10 % of the profit to its shareholders. How much profit will

the company pay to its shareholders if two machines break down and have not been used for a year? /​

Answer 1

Given : A textile company has 20 machines. The annual aggregate output produced by these machines is  Rs. 200,000.

Annually, the company pays Rs. 20,000 for raw material and Rs. 100,000 as  infrastructure costs.

The company pays 10 % of the profit to its shareholders.

To Find : How much profit will   the company pay to its shareholders if two machines break down and have not been used for a year?  

Solution:

A textile company has 20 machines.

The annual aggregate output produced by these machines is  Rs. 200,000.

Annually, the company pays Rs. 20,000 for raw material

=> raw material annually per machine = 20000/20 = Rs 1000

output produced  per machine = 200,000. / 20 =  Rs 10000

if Two machines are break down and have not been used then 18 machines used

raw material   = 18 *  1000 = 18000

output produced   = 10,000 * 18  =  Rs 180000

Rs. 100,000 as infrastructure costs. is fixed

Total cost  = 18000 + 100000  = 118000

Total output = 180000

Profit = 180000 - 118000  = 62000 Rs

. The company pays 10 % of the profit to its shareholders.

= (10/100) 62000  = 6200 Rs

company pay to its shareholders    = 6200 Rs

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