Multiple choice

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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 cost price of one kg sheet is Rs. 105, then what would be its selling price rounded to the nearest whole number?

  1. Rs. 116

  2. Rs. 125

  3. Rs. 130

  4. Rs. 132

  5. Rs. 135
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A Correct answer
Explanation

Total production is 5000 tonnes. Sheets are 15% of 5000 = 750 tonnes (750,000 kg). Total profit is 70 million, and sheet profit is 12% of 70 million = 8.4 million. Profit per kg = 8.4 million / 750,000 kg = 11.2 Rs/kg. Selling price = Cost price + Profit = 105 + 11.2 = 116.2, which rounds to 116.

AI explanation

The total production of sheets is 15% of 5000 tonnes, which is 750 tonnes, or 750,000 kg. The total profit earned from sheets is 12% of 70 million rupees, amounting to Rs. 8,400,000. We calculate the profit per kg by dividing 8,400,000 by 750,000, resulting in Rs. 11.2 per kg. Since the cost price is Rs. 105, we add the profit of Rs. 11.2 to find the selling price, giving us Rs. 116.2, which rounds to Rs. 116. The result is Rs. 116.

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