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Rotomac produces very fine quality of writing pens. Company knows that on an average 20% of the produced pens are always defective so are rejected before packing. Company promises to deliver 7500 pens to its wholesaler at Rs. 15 each. It estimates the overall profit on all the manufactured pens to be 25%. What is the manufacturing cost of each pen ?
- a)Rs. 16
- b)Rs. 12
- c)Rs. 9.6
- d)Rs.18
- e)None of these
Correct answer is option 'C'. Can you explain this answer?
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Rotomac produces very fine quality of writing pens. Company knows that...
Given information:
- The company promises to deliver 7500 pens to its wholesaler at Rs. 15 each.
- The company estimates the overall profit on all the manufactured pens to be 25%.
- On average, 20% of the produced pens are defective and rejected before packing.
To find:
- The manufacturing cost of each pen.
Solution:
Step 1: Calculating the selling price of 7500 pens:
- The company promises to deliver 7500 pens to the wholesaler at Rs. 15 each.
- Therefore, the selling price of 7500 pens = 7500 * Rs. 15 = Rs. 112,500.
Step 2: Calculating the overall profit on all the manufactured pens:
- The company estimates the overall profit on all the manufactured pens to be 25%.
- Let's assume the manufacturing cost of each pen is 'C'.
- The selling price of 7500 pens is Rs. 112,500, which includes the overall profit.
- Therefore, the manufacturing cost of 7500 pens = Rs. 112,500 - 25% of Rs. 112,500
= Rs. 112,500 - 0.25 * Rs. 112,500
= Rs. 112,500 - Rs. 28,125
= Rs. 84,375.
Step 3: Calculating the manufacturing cost of each pen:
- The company knows that on average 20% of the produced pens are defective and rejected before packing.
- Therefore, the number of defective pens = 20% of 7500
= 0.20 * 7500
= 1500 pens.
- The total manufacturing cost of 7500 pens is Rs. 84,375.
- The number of non-defective pens = 7500 - 1500
= 6000 pens.
- The manufacturing cost of 6000 non-defective pens = Rs. 84,375.
- Therefore, the manufacturing cost of each pen = Rs. 84,375 / 6000
= Rs. 14.06 (approx.)
Conclusion:
- The manufacturing cost of each pen is approximately Rs. 14.06.
- None of the given options (a), (b), (c), (d), (e) matches the correct answer.
- The company promises to deliver 7500 pens to its wholesaler at Rs. 15 each.
- The company estimates the overall profit on all the manufactured pens to be 25%.
- On average, 20% of the produced pens are defective and rejected before packing.
To find:
- The manufacturing cost of each pen.
Solution:
Step 1: Calculating the selling price of 7500 pens:
- The company promises to deliver 7500 pens to the wholesaler at Rs. 15 each.
- Therefore, the selling price of 7500 pens = 7500 * Rs. 15 = Rs. 112,500.
Step 2: Calculating the overall profit on all the manufactured pens:
- The company estimates the overall profit on all the manufactured pens to be 25%.
- Let's assume the manufacturing cost of each pen is 'C'.
- The selling price of 7500 pens is Rs. 112,500, which includes the overall profit.
- Therefore, the manufacturing cost of 7500 pens = Rs. 112,500 - 25% of Rs. 112,500
= Rs. 112,500 - 0.25 * Rs. 112,500
= Rs. 112,500 - Rs. 28,125
= Rs. 84,375.
Step 3: Calculating the manufacturing cost of each pen:
- The company knows that on average 20% of the produced pens are defective and rejected before packing.
- Therefore, the number of defective pens = 20% of 7500
= 0.20 * 7500
= 1500 pens.
- The total manufacturing cost of 7500 pens is Rs. 84,375.
- The number of non-defective pens = 7500 - 1500
= 6000 pens.
- The manufacturing cost of 6000 non-defective pens = Rs. 84,375.
- Therefore, the manufacturing cost of each pen = Rs. 84,375 / 6000
= Rs. 14.06 (approx.)
Conclusion:
- The manufacturing cost of each pen is approximately Rs. 14.06.
- None of the given options (a), (b), (c), (d), (e) matches the correct answer.
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Rotomac produces very fine quality of writing pens. Company knows that on an average 20% of the produced pens are always defective so are rejected before packing. Company promises to deliver 7500 pens to its wholesaler at Rs. 15 each. It estimates the overall profit on all the manufactured pens to be 25%. What is the manufacturing cost of each pen ?a)Rs. 16b)Rs. 12c)Rs. 9.6d)Rs.18e)None of theseCorrect answer is option 'C'. Can you explain this answer?
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Rotomac produces very fine quality of writing pens. Company knows that on an average 20% of the produced pens are always defective so are rejected before packing. Company promises to deliver 7500 pens to its wholesaler at Rs. 15 each. It estimates the overall profit on all the manufactured pens to be 25%. What is the manufacturing cost of each pen ?a)Rs. 16b)Rs. 12c)Rs. 9.6d)Rs.18e)None of theseCorrect answer is option 'C'. Can you explain this answer? for Quant 2024 is part of Quant preparation. The Question and answers have been prepared according to the Quant exam syllabus. Information about Rotomac produces very fine quality of writing pens. Company knows that on an average 20% of the produced pens are always defective so are rejected before packing. Company promises to deliver 7500 pens to its wholesaler at Rs. 15 each. It estimates the overall profit on all the manufactured pens to be 25%. What is the manufacturing cost of each pen ?a)Rs. 16b)Rs. 12c)Rs. 9.6d)Rs.18e)None of theseCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for Quant 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Rotomac produces very fine quality of writing pens. Company knows that on an average 20% of the produced pens are always defective so are rejected before packing. Company promises to deliver 7500 pens to its wholesaler at Rs. 15 each. It estimates the overall profit on all the manufactured pens to be 25%. What is the manufacturing cost of each pen ?a)Rs. 16b)Rs. 12c)Rs. 9.6d)Rs.18e)None of theseCorrect answer is option 'C'. Can you explain this answer?.
Rotomac produces very fine quality of writing pens. Company knows that on an average 20% of the produced pens are always defective so are rejected before packing. Company promises to deliver 7500 pens to its wholesaler at Rs. 15 each. It estimates the overall profit on all the manufactured pens to be 25%. What is the manufacturing cost of each pen ?a)Rs. 16b)Rs. 12c)Rs. 9.6d)Rs.18e)None of theseCorrect answer is option 'C'. Can you explain this answer? for Quant 2024 is part of Quant preparation. The Question and answers have been prepared according to the Quant exam syllabus. Information about Rotomac produces very fine quality of writing pens. Company knows that on an average 20% of the produced pens are always defective so are rejected before packing. Company promises to deliver 7500 pens to its wholesaler at Rs. 15 each. It estimates the overall profit on all the manufactured pens to be 25%. What is the manufacturing cost of each pen ?a)Rs. 16b)Rs. 12c)Rs. 9.6d)Rs.18e)None of theseCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for Quant 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Rotomac produces very fine quality of writing pens. Company knows that on an average 20% of the produced pens are always defective so are rejected before packing. Company promises to deliver 7500 pens to its wholesaler at Rs. 15 each. It estimates the overall profit on all the manufactured pens to be 25%. What is the manufacturing cost of each pen ?a)Rs. 16b)Rs. 12c)Rs. 9.6d)Rs.18e)None of theseCorrect answer is option 'C'. Can you explain this answer?.
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Rotomac produces very fine quality of writing pens. Company knows that on an average 20% of the produced pens are always defective so are rejected before packing. Company promises to deliver 7500 pens to its wholesaler at Rs. 15 each. It estimates the overall profit on all the manufactured pens to be 25%. What is the manufacturing cost of each pen ?a)Rs. 16b)Rs. 12c)Rs. 9.6d)Rs.18e)None of theseCorrect answer is option 'C'. Can you explain this answer?, a detailed solution for Rotomac produces very fine quality of writing pens. Company knows that on an average 20% of the produced pens are always defective so are rejected before packing. Company promises to deliver 7500 pens to its wholesaler at Rs. 15 each. It estimates the overall profit on all the manufactured pens to be 25%. What is the manufacturing cost of each pen ?a)Rs. 16b)Rs. 12c)Rs. 9.6d)Rs.18e)None of theseCorrect answer is option 'C'. Can you explain this answer? has been provided alongside types of Rotomac produces very fine quality of writing pens. Company knows that on an average 20% of the produced pens are always defective so are rejected before packing. Company promises to deliver 7500 pens to its wholesaler at Rs. 15 each. It estimates the overall profit on all the manufactured pens to be 25%. What is the manufacturing cost of each pen ?a)Rs. 16b)Rs. 12c)Rs. 9.6d)Rs.18e)None of theseCorrect answer is option 'C'. Can you explain this answer? theory, EduRev gives you an
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