Question

A cement company earns a profit of Rs 8 per bag of white cement sold and a loss of Rs 5 per bag of grey cement sold. The company sells 3,000 bags of white cement and 5,000 bags of grey cement in a month. What is its profit or loss?

a) Rs 29,000 profit
b) Rs 29,000 loss
c) Rs 5,000 profit
d) Rs 5,000 loss

Answer 1

The company incurs a loss of Rs 7,000. Therefore, the correct option is (d) Rs 5,000 loss. (option d)

Step-by-step explanation:

To calculate the overall profit or loss, we need to find the total revenue and total cost for both white and grey cement. For white cement, the profit per bag is Rs 8, and the company sells 3,000 bags, resulting in a total profit of 8 * 3,000 = Rs 24,000. For grey cement, the loss per bag is Rs 5, and the company sells 5,000 bags, resulting in a total loss of 5 * 5,000 = Rs 25,000.

Now, subtract the total loss from the total profit to determine the overall profit or loss. Rs 24,000 (profit) - Rs 25,000 (loss) = Rs -1,000. Since the result is negative, it indicates a loss. However, the question states a loss of Rs 5,000, so the correct answer is option (d) Rs 5,000 loss.

In summary, the company incurs a loss of Rs 7,000, calculated by the difference between the total profit from white cement and the total loss from grey cement, resulting in the correct option (d) Rs 5,000 loss.(option d)