Multiple choice

Passage

Directions: Read the information and answer the questions given below: A metal company in Maharashtra has its branches all over India. It produces 5 different types of metal products such as Sheets, Flat strips, Rods, Pipes, and Channels. Total production of the company for the financial year 2019-2020 is 5,000 tonnes and total profit earned from all the five products is Rs. 70 million. Furthermore, individual data for each type of product was analyzed and it has been found that out of the total production, the percentage for Sheets is 15% and profit earned from it is 12% of the total profit. Production of flat strips is 25% of the total production, however, profit earned from it is 23% of the total profit. Production of Rods and Pipes are 28% and 12% of the total production, respectively. The profit earned from Rods is 35% of the total profit earned. An amount earned as profit from channels accumulate to 20% of the total profit. Also, production of Channels is 20% of the total production. The profit earned by pipes is half of profit earned by Channels.

If the selling price of flat strips is Rs. 90 per kg, then what would be its cost price of flat strip per kg when it is rounded to the nearest whole number?

  1. Rs. 79

  2. Rs. 77

  3. Rs. 73

  4. Rs. 71

  5. Rs. 67
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Total production of flat strips is 25% of 5,000 tonnes, which is 1,250,000 kg. Total profit from flat strips is 23% of Rs. 70 million, which equals Rs. 16.1 million. With a selling price of Rs. 90 per kg, the total revenue is Rs. 112.5 million, making the total cost Rs. 96.4 million. Dividing this cost by the total weight gives a cost price of Rs. 77.12 per kg, which rounds to Rs. 77.

AI explanation

The total production of flat strips is 25% of 5000 tonnes, which equals 1250 tonnes, or 1,250,000 kg. The total profit from flat strips is 23% of 70 million, which is Rs. 16,100,000. To find the profit per kg, we divide 16,100,000 by 1,250,000, which equals Rs. 12.88 per kg. Given the selling price is Rs. 90 per kg, the cost price is 90 minus 12.88, resulting in Rs. 77.12, which rounds to Rs. 77. The result is Rs. 77.

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