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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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Comments ( 1 )

  1. SAIDESWAR RAAO
    SAIDESWAR RAAO :
    4 months ago

    Why take 11 machines

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