The New Pottery Works Ltd. prepares four types of articles A, B, C & D. The same raw materials are used for manufacture of all these articles. The manufactured articles that pass inspection and tests are called 'finished articles' and sold to the public. The articles which are found defective on inspection are called 'defective articles' and are sold only to the employees at concessional rate.
The ratio of defective articles is 10% of the finished articles. In other words, for every 100 finished articles there are 10 defective articles. T
he following data are collected from the Manufacturing Account of the New Pottery Works Ltd. for the month of November 1993:
One type of article requires one kg of raw materials at. Rs. 4 per kg.
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