Question

A company buys a machine for 7000 rupees and spends 2000 for electricity and labour charges. If he sells these machines at 5000 rupees. Find his loss percent.
A. 12.22%
B. 32.23%
C. 22.22%
D. 44.44%

Answer 1

Hint: We will first add the cost price and maintain price to declare the total cost price of the machine for the company which is $7000+2000=9000$ rupees. We will then subtract the selling price from total cost and finally the percentage of company loss after selling this machine.

Complete step-by-step answer:
It is given in the question that a company buys a machine for 7000rs and spends 2000 for electricity and labour charge. Also the company sells these machines at 5000 rupees, then we have to find out the loss percentage of the company.
Price of the machine when bought = $Rs.7000$, maintain cost or the amount spend by company on electricity and labour = $Rs.2000$, thus, total cost of machine will be
\[=\text{ }Price\text{ }of\text{ }machine\text{ }+\text{ }maintenance\text{ }cost\]
$=Rs.7000+Rs.2000=Rs.9000$.
Therefore, the total cost of the machine \[=\text{ }Rs.9000\].
Now, it is given in the question that the selling price \[=\text{ }Rs.5000\], thus, loss amount is
\[~=\text{ }cost\text{ }price\text{ }-\text{ }selling\text{ }price\]
$=Rs.9000-Rs.5000=Rs.4000$.
We know that loss percentage can be calculated using formula
$loss\%=\dfrac{loss}{Cost\ Price}\times 100$
$loss\%=\dfrac{4000}{9000}\times 100$
$loss\%=\dfrac{400}{9}=44.44\%$.
Therefore, the loss percentage is 44.44% and thus option d) is the correct answer.

Note: Students may find the loss percentage using the assumed cost price of the machine as Rs7000 which is not correct at all. We know that the cost price for the machine will be total expenditure on the machine which is Rs9000 and not Rs7000. Thus, taking Rs7000 as cost price will result in calculation of wrong answer.