# 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 :

$$\eqalign{ & = \frac{{200 \times 100}}{{1400}} \cr & = 14.28\% \cr} $$

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Why take 11 machines