The total cost of setting up a sugar cane factory is Rs. 1 crore, which produces 5000 tone er annum. Sugar is being sold at Rs. 18 per kg. Manufacturing cost including raw material is Rs. 3.2 per kg, labour and packing charges are Rs. 1.8 per kg. Maintenance and utilies expenses are Rs. 2 per kg and the general expenses (ie all the rest charges) are Rs. 3 per kg, 20% taxes are being paid of the gross annual earnings, then the net profit of the profuction of the factory per annum is :

Options

A. Rs. 4.2 crore
B. Rs. 3.2 crore
C. 5.4 crore
D. none of these

Answer

To solve the problem step by step, we will calculate the total revenue, total costs, and then determine the net profit after taxes.

### Step 1: Calculate the total revenue from sugar sales.
- The factory produces 5000 tons of sugar per annum.
- Convert tons to kilograms:
\[ 5000 \text{ tons} = 5000 \times 1000 \text{ kg} = 5,000,000 \text{ kg} \]
- The selling price of sugar is Rs. 18 per kg.
- Therefore, the total revenue (TR) is:
\[ TR = \text{Quantity} \times \text{Selling Price} = 5,000,000 \text{ kg} \times 18 \text{ Rs/kg} = 90,000,000 \text{ Rs} \]

### Step 2: Calculate the total manufacturing cost.
- Manufacturing cost (including raw material) is Rs. 3.2 per kg.
- Labor and packing charges are Rs. 1.8 per kg.
- Maintenance and utilities expenses are Rs. 2 per kg.
- General expenses are Rs. 3 per kg.
- Total manufacturing cost (MC) per kg is:
\[ MC = 3.2 + 1.8 + 2 + 3 = 10 \text{ Rs/kg} \]
- Therefore, the total manufacturing cost for the year is:
\[ \text{Total MC} = 5,000,000 \text{ kg} \times 10 \text{ Rs/kg} = 50,000,000 \text{ Rs} \]

### Step 3: Calculate the gross profit before tax.
- Gross profit (GP) is calculated as:
\[ GP = TR - \text{Total MC} = 90,000,000 \text{ Rs} - 50,000,000 \text{ Rs} = 40,000,000 \text{ Rs} \]

### Step 4: Calculate the tax on gross profit.
- The tax rate is 20%.
- Therefore, the tax amount (T) is:
\[ T = 0.20 \times GP = 0.20 \times 40,000,000 \text{ Rs} = 8,000,000 \text{ Rs} \]

### Step 5: Calculate the net profit after tax.
- Net profit (NP) is calculated as:
\[ NP = GP - T = 40,000,000 \text{ Rs} - 8,000,000 \text{ Rs} = 32,000,000 \text{ Rs} \]

### Final Answer:
The net profit of the production of the factory per annum is **Rs. 32,000,000**.