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Nasim Electronics Limited has designed a household appliance. It has estimated that 1000 units would be produced during the first month. Thereafter, the production would increase at 5% per month for the next 24 months and then start declining by 12% per month till it reaches 250 units per month after which the production would be discontinued. Compute the total number of units that the company would produce?
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Calculation of Total Units Produced

To calculate the total number of units that Nasim Electronics Limited would produce, we need to consider the production pattern over the given time period. Let's break down the calculation into different phases:

Phase 1: First Month
- Number of units produced in the first month = 1000 units

Phase 2: Increasing Production
- From the second month onwards, the production increases at a rate of 5% per month for the next 24 months.

To calculate the number of units produced in each month during this phase, we can use the formula:
Number of units in a particular month = Number of units in the previous month * (1 + Growth Rate)

- Number of units produced in the second month = 1000 units * (1 + 5%) = 1050 units
- Number of units produced in the third month = 1050 units * (1 + 5%) = 1102.5 units (rounded off to nearest whole number)
- Continuing this calculation for the next 24 months, we get the production figures:

Month | Number of Units
-----------------------
2 | 1050
3 | 1103
4 | 1158
... | ...
25 | 2042

Phase 3: Declining Production
- After 24 months, the production starts declining by 12% per month until it reaches 250 units per month.

Similar to the previous calculation, we can use the formula:
Number of units in a particular month = Number of units in the previous month * (1 - Decline Rate)

- Number of units produced in the 25th month = 2042 units * (1 - 12%) = 1798.16 units (rounded off to nearest whole number)
- Number of units produced in the 26th month = 1798 units * (1 - 12%) = 1582.24 units (rounded off to nearest whole number)
- Continuing this calculation until we reach 250 units per month, we get the production figures:

Month | Number of Units
-----------------------
25 | 1798
26 | 1582
27 | 1392
... | ...
41 | 250

Phase 4: Discontinued Production
- After reaching 250 units per month, the production is discontinued.

Total Units Produced
To calculate the total number of units produced, we sum up the units produced in each phase:

Total units produced = Units produced in Phase 1 + Units produced in Phase 2 + Units produced in Phase 3

Total units produced = 1000 + (1050 + 1103 + 1158 + ... + 2042) + (1798 + 1582 + 1392 + ... + 250)

To simplify the calculation, we can use the formula for the sum of an arithmetic series:

Sum = (n/2) * (first term + last term)

Using this formula, we can calculate the total units produced as follows:

Total units produced = 1000 + (25/2) * (1050 + 2042) + (17/2) * (1798 + 250)

Total units produced = 1000 + 625 * 3092
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Nasim Electronics Limited has designed a household appliance. It has estimated that 1000 units would be produced during the first month. Thereafter, the production would increase at 5% per month for the next 24 months and then start declining by 12% per month till it reaches 250 units per month after which the production would be discontinued. Compute the total number of units that the company would produce?
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Nasim Electronics Limited has designed a household appliance. It has estimated that 1000 units would be produced during the first month. Thereafter, the production would increase at 5% per month for the next 24 months and then start declining by 12% per month till it reaches 250 units per month after which the production would be discontinued. Compute the total number of units that the company would produce? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Nasim Electronics Limited has designed a household appliance. It has estimated that 1000 units would be produced during the first month. Thereafter, the production would increase at 5% per month for the next 24 months and then start declining by 12% per month till it reaches 250 units per month after which the production would be discontinued. Compute the total number of units that the company would produce? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Nasim Electronics Limited has designed a household appliance. It has estimated that 1000 units would be produced during the first month. Thereafter, the production would increase at 5% per month for the next 24 months and then start declining by 12% per month till it reaches 250 units per month after which the production would be discontinued. Compute the total number of units that the company would produce?.
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