Markup planning with spoilage — Jhun Jhunwala manufactures 1000 toys at a cost of ₹ 1.20 each (total cost ₹ 1200). He marks such that selling only 70% of production at the marked price would yield a 16.66% overall profit. In reality, he sells 750 toys at the marked price (the remaining are defective). What is his net profit or loss percentage?

Introduction / Context:
The manufacturer picks a marked price so that limited sales volume still clears a target overall profit. After defects reduce the sellable quantity further (to 750 units), we must recompute the realized profit based on the actual revenue versus total manufacturing cost.

Given Data / Assumptions:

• Units produced = 1000; cost/unit = ₹ 1.20 ⇒ total cost = ₹ 1200.
• Planned: if 70% (700 units) sell at MP, overall profit target = 16.66% (i.e., one-sixth).
• Actual: 750 units sold at MP; remaining are unsellable.

Concept / Approach:
First, solve the planned condition to find the marked price per unit. Then apply that price to the actual number sold. Finally, compare actual revenue to total cost to find the net percentage result.

Step-by-Step Solution:

Verification / Alternative check:
If only 700 sold, profit would have been 1400 − 1200 = ₹ 200 = 16.66% as planned; selling 750 simply increases revenue by ₹ 100, improving profit to 25%.

Why Other Options Are Wrong:
14.44% loss contradicts positive realized profit; 33.33% profit overstates earnings; “none” is unnecessary.

Common Pitfalls:
Forgetting that total cost includes the defective units, or mistakenly applying profit% to per-unit cost rather than total outlay.

Final Answer:
25% profit