Factory P produces 20,000 bags of cement per day while factory Q produces 15,000 bags per day. If P reduces production by 5% and Q increases production by 5%, determine the effective loss in the number of bags produced per day by the two factories.
Worked solution (try it first)
P loses 5% of 20,000: 0.05×20000=1000 bags.
Q gains 5% of 15,000: 0.05×15000=750 bags.
The net loss is 1000−750=250 bags a day, option A.