Multiple choice

Passage

Directions: Read the following passage and answer the question. An Agrotech company in Punjab has its branches there all over in India, produces 5 different types of farm products such as T, I, F, A and N. Total production of the company for the financial year 2018-2019 is 5,000 tonnes and total profit earned from all the five products is Rs. 140 million. Further, individual data for each type of product was analyzed and it has been found that out of the total production, the percentage for product T is 15% and 12% of the total profit is earned from product T. Product I is 25% of the total production, however, 23% of the total profit is earned from it. Product F and A are 28% and 12% of the total production respectively. The profit earned from product F is 35% of the total profit earned and the profit earned from product A is 10% of the total profit. An amount earned as profit from product N accumulates to 20% of the total profit, however product N is just 20% of the total production.

If the selling price of product I is Rs. 60 per kg, then what would be its cost price rounded to nearest whole number?

  1. Rs. 28

  2. Rs. 34

  3. Rs. 41

  4. Rs. 43

  5. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Total production = 5000 tonnes. Product I is 25% of 5000 = 1250 tonnes. Total profit = 140 million. Profit from I is 23% of 140 = 32.2 million. Cost price = (Total Revenue - Profit) / Quantity. Revenue = 1250 tonnes * 1000 kg/tonne * 60 Rs/kg = 75 million. Cost = 75 - 32.2 = 42.8 million. Cost per kg = 42.8 million / 1.25 million kg = 34.24, which rounds to 34.

AI explanation

The total production of product I is 25% of 5,000 tonnes, which equals 1,250,000 kg. The total profit earned from product I is 23% of Rs. 140 million, amounting to Rs. 32.2 million, or Rs. 32,200,000. Dividing the total profit by the total quantity gives the profit per kg: 32,200,000 / 1,250,000 = Rs. 25.76. Given the selling price of Rs. 60 per kg, the cost price is 60 - 25.76 = Rs. 34.24, which rounds to Rs. 34.

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