A machine produces a certain item at a rate of 200units per hour.

Given:
1. A machine produces a certain item at a rate of 200units per hour.
2. The cost of each item produced is 6 and S.P is 12 None of the items are defective.

Asked: If the rate of production is increased by y%, the no: of defective units become (4+0.05y)% and the cost of production of each item increases by (y/2)%. Find the profit ( per hour) if the machine production is 300 units per hour

For 300 units/hour production rate;
Rate of production is increased by 50% ; y = 50
Number of defective units = (4 + .05*50)% = 6.5% = 300*6.5% = 19.5 ~= 20 since number of defective units must be an integer
Cost of production increases by 25%
Cost of each item produced = 7.5
Profit per hour = (300-20)*12 - 300*7.5 = 1350 - 240 = 1110

robert2345
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