A company has 12 machines of equal efficiency in its factory. The annual manufacturing expenses are Rs. 24,000 and the establishment charges are Rs. 10,000. The annual output of the company is Rs. 48,000. The annual output and manufacturing costs are directly proportional to the no. of machines while the share holders get the 10% profit, which is directly proportional to the annual output of the company. If 8.33% of machines remained close throughout the year. Then the percentage decrease in the amount of share holders is :

A. 14.28%

B. 11.11%

C. 16.66%

D. 8.33%

E. None of these

Answer: Option A

Solution(By Examveda Team)

No. of Machines	Output	Manuf. cost	Est. cost	Total cost	Profit
12	48, 000	24, 000	10, 000	34, 000	14, 000
11	44, 000	22, 000	10, 000	32, 000	12, 000

Profit,
= Output - total cost
= 44000 - 32000
= Rs. 12000
Initial value of share holders,
= 14000 $$ \times \frac{{10}}{{100}}$$
= Rs. 1400
New value of share holders,
= 12000 $$ \times \frac{{10}}{{100}}$$
= Rs. 1200
Decrease in Share holder value = 1400 - 1200 = 200
percentage decrease in the value of shareholders is :
$$\eqalign{ & = \frac{{200 \times 100}}{{1400}} \cr & = 14.28\% \cr} $$