Question

A manufacturer makes 750 articles at a cost of 60 paisa per article. He fixes the selling prices such that if only 600 articles are sold he would make a profit of 40% on his outlay. Find his actual profit or loss percentage, if he could sell 560 articles.
(a)$30\dfrac{2}{3}%$
(b)$3\dfrac{2}{3}%$
(c)$30\dfrac{1}{3}%$
(d)$20\dfrac{2}{3}%$

Answer 1

Hint: To solve this question, first, we will find out the total amount spent by the manufacturer to manufacture 750 articles in rupees. Then, we will find out the selling price of 600 articles by the data given that he makes a profit of 40% by selling all 600 articles and after that, we will find out the selling price of one article and then of 350 articles. And for-profit we will subtract the amount spend by the manufacturer from the selling price of 560 articles, hence, we can find the profit percentage.

Complete step by step answer:
In question, it is given that, the manufacturer makes an article at 60 paise per article. So, Rs. 1 = 100 paisa
Then, the manufacturer makes the article at Rs. 0.6 per article.
Now, as he made 750 articles.
So, total amount spend by manufacturer on making 750 articles = Rs.$750\times 0.60$ $\text{= Rs}\text{. 450}$
Now, as in question, it is given that if he is able to sell 600 articles, then he gains a profit of 40%.
So, the selling price of 600 units will be equal to Rs. $\dfrac{40}{100}\times 450$
On solving, we get $Rs.1.40\times 450$ $=\text{ Rs}\text{. 630}$
So, selling price of 600 units$=\text{ Rs}\text{. 630}$
Now, so, if sells all 600 units for Rs. 630, then the Selling price of each article of a batch of 600 articles becomes $Rs.\dfrac{630}{600}$ , which is equals to Rs. 1.05
So, the selling price of 560 articles at Rs. 1.05 per article $=Rs.560\times 1.05$ , which equals to Rs. 588
Now, its obvious that the selling price of 560 articles is more than the total amount spend by the manufacturer for manufacturing 750 articles, then the manufacturer is in profit.
So, the Profit made by the manufacturer in Rs. will be equal to the selling price of 560 articles minus amount spent by the manufacturer for manufacturing 750 articles.
Then, Profit made by manufacturer in Rs. = Rs. 588 – Rs. 450 = Rs. 138
And profit in % $=\dfrac{138}{450}\times 100$
On simplifying, we get
$=\dfrac{92}{3}%$
Or, $30\dfrac{2}{3}%$
Hence, option ( a ) is true.

Note: before solving these types of questions, read questions at least twice carefully and take out all given information from the question which will help in solving the problem. Always remember that Rs 1 = 100 paise. Try not to do calculation mistakes while solving the question.