a textile manufacturing firm employees 70 looms . it makes fabrics for a branded company . the aggregate sales value of the output of the 70 looms is rs 00000 and the monthly manufacturing expenses is rs 1 , 50000 . assume that each loom contributes equally to the sales and manufacturing expenses are evenly spread over the number of looms . monthly establishment charges are rs 75000 . if one loom breaks down and remains idle for one month , the decrease in profit is : Pick one:
A) 13000
B) 7000
C) 10000
D) 5000
E) none of these

Rationale: explanation : profit = 5 , 00,000 â ˆ ’ ( 1 , 50,000 + 75,000 ) = rs . 2 , 75,000 . since , such loom contributes equally to sales and manufacturing expenses . but the monthly charges are fixed at rs 75,000 . if one loan breaks down sales and expenses will decrease . new profit : - = > 500000 ã — ( 69 / 70 ) â ˆ ’ 150000 ã — ( 69 / 70 ) â ˆ ’ 75000 . = > rs 2 , 70,000 . decrease in profit = > 2 , 75,000 â ˆ ’ 2 , 70,000 = > rs . 5,000 . answer : d
Answer: D