2 years ago in Profit & Loss

A pen company produces very fine quality of writing pens. Company knows that on average 10% of the produced pens are always defective so are rejected before packing. Company promises to deliver 7200 pens to its wholesaler at Rs. 10 each. It estimates the overall profit on all the manufactured pens to be 25%. What is the manufactured cost of each pen?

[A] Rs. 6
[B] Rs. 7.2
[C] Rs. 5.6
[D] Rs. 8
[E] None of these
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