Question: A Techno company has 14 machines of equal efficiency in its factory. The annual manufacturing costs are Rs. 42,000 and establishment charges are Rs. 12,000. The annual output of the company is Rs. 70,000. The annual output and manufacturing costs are directly proportional to the no. of machines. The share holders get 12.5% profit, which is directly proportional to the annual output of the company. If 7.14% machines remain closed throughout the year, then the percentage decrease in the amount of profit of the share holders would be:
Profit is directly proportional to the annual output and the annual output is directly proportional to the number of machines.
∴ We can say that the profit is directly proportional to the number of machines.
∴ If 7.14% machines remain closed, the percentage decrease in profit is also 7.14%.
Hence, option (d).