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A space research company wants to sell i...

A space research company wants to sell its two products A and B. If the product A is sold at 20% loss and the product B at 30% gain, the company will not lose anything. If the product A is sold at 15% loss and the product B at 15% gain, the company will lose Rs. 6 million in the deal. What is the cost of product B ?

A

Rs. 140 million

B

Rs. 120 million

C

Rs. 100 million

D

Rs. 80 million

Text Solution

AI Generated Solution

The correct Answer is:
To solve the problem step by step, we will first define the costs of products A and B, and then set up equations based on the information provided. ### Step 1: Define Variables Let: - Cost of product A = \( X \) (in millions) - Cost of product B = \( Y \) (in millions) ### Step 2: Set Up the First Equation According to the problem, if product A is sold at a 20% loss and product B at a 30% gain, the company will not incur any loss. - Selling price of product A at 20% loss = \( 80\% \) of \( X = 0.8X \) - Selling price of product B at 30% gain = \( 130\% \) of \( Y = 1.3Y \) Since the total selling price equals the total cost, we can write the equation: \[ 0.8X + 1.3Y = X + Y \] ### Step 3: Rearranging the First Equation Rearranging the equation gives: \[ 0.8X + 1.3Y - X - Y = 0 \] \[ -0.2X + 0.3Y = 0 \] This simplifies to: \[ 0.3Y = 0.2X \quad \text{(Equation 1)} \] ### Step 4: Set Up the Second Equation According to the problem, if product A is sold at a 15% loss and product B at a 15% gain, the company will incur a loss of 6 million. - Selling price of product A at 15% loss = \( 85\% \) of \( X = 0.85X \) - Selling price of product B at 15% gain = \( 115\% \) of \( Y = 1.15Y \) The equation for this scenario, considering the loss of 6 million, is: \[ 0.85X + 1.15Y = X + Y - 6 \] ### Step 5: Rearranging the Second Equation Rearranging gives: \[ 0.85X + 1.15Y - X - Y + 6 = 0 \] \[ -0.15X + 0.15Y + 6 = 0 \] This simplifies to: \[ 0.15Y = 0.15X - 6 \quad \text{(Equation 2)} \] ### Step 6: Solve the Equations From Equation 1, we have: \[ Y = \frac{0.2}{0.3}X = \frac{2}{3}X \] Substituting \( Y \) into Equation 2: \[ 0.15 \left(\frac{2}{3}X\right) = 0.15X - 6 \] \[ 0.1X = 0.15X - 6 \] Rearranging gives: \[ 0.15X - 0.1X = 6 \] \[ 0.05X = 6 \] \[ X = \frac{6}{0.05} = 120 \text{ million} \] ### Step 7: Find Cost of Product B Substituting \( X \) back into the equation for \( Y \): \[ Y = \frac{2}{3} \times 120 = 80 \text{ million} \] ### Final Answer The cost of product B is \( 80 \) million. ---
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DISHA PUBLICATION-PROFIT, LOSS AND DISCOUNT-Practice Exercise (Standard Level)
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