An Indian company, having its registered office at Gurugram, is engaged in manufacturing of consumer goods at Noida. The goods manufactured by the company are sold in Indian market and exported to Europe. Company produces five products namely ‘P’, ‘Q’, ‘R’, ‘S’ and ‘T’. Total production of the company for the financial year 2021-22 is 3,000 tonnes and the turnover of the company is ₹ 50 million. Analysis of the production and net revenue generation shows that production of product ‘P’ is 21% of the total production and 18% of the turnover is attributable to product ‘P’; production of ‘Q’ is 16% of the total production and 17% of the turnover is attributable to ‘Q’; ‘R’ accounts for 18% of the total production and 20% of the turnover; ‘S’ accounts for 20% of the total production and 25% of the turnover, and; ‘T’ accounts for 25% of total production and 20% of turnover.

What is the average selling price per tonne of all products taken together?

Correct Option: ₹16,667

To find the average selling price per tonne of all products taken together, we need to divide the total turnover (revenue) of the company by the total production volume in tonnes.

Step 1: Identify the given data

Total Production = 3,000 tonnes
Total Turnover = ₹ 50 million

Step 2: Convert turnover into Indian Rupees (₹)

1 million = 10,000,000 (10⁶ or 10 lakhs)
Therefore, Total Turnover = 50 × 1,000,000 = ₹ 50,000,000

Step 3: Calculate the average selling price per tonne

The formula for average selling price per tonne is:

$\text{Average Selling Price per Tonne}=\frac{\text{Total Turnover}}{\text{Total Production (in tonnes)}}$

Substituting the values into the formula:

$\text{Average Selling Price per Tonne}=\frac{\mathrm{50,000,000}}{\mathrm{3,000}}$

$\text{Average Selling Price per Tonne}=\frac{\mathrm{50,000}}{3}\approx \text{₹16,666.67}$

Rounding off to the nearest rupee gives ₹16,667 per tonne.