A vendor order 2000 pieces of a particular Chinese component at Rs. 25 per piece.........What is the loss to the vendor?

Question

A vendor order 2000 pieces of a particular Chinese component at Rs. 25 per piece.
According to his estimates, even if 5% fail to pass the quality tests, then he will make a profit of 25%.
However, as it turned out, 50% of the components were rejected.
What is the loss to the vendor?

Answer 1

2000 × 25 = 50000 total cost
5% of 2000 = 100
1900 × selling Price = 50000 * 1.25
Selling price = 32.8947
Final income = 1000 × 32.8947 = 32894.7
Total loss = 50000 - 32894.7 = 17105.3.