The correct answer is: A. no abnormal loss and normal gain
Explanation:
Normal loss is a loss that is considered to be unavoidable in the production process. It is usually due to factors such as spoilage, scrap, and rework. Abnormal loss, on the other hand, is a loss that is not considered to be unavoidable. It is usually due to factors such as accidents, equipment breakdowns, and human error.
In this case, 100 units are introduced in a process in which normal loss is 5% of input. This means that the expected normal loss is 5 units. However, the actual output is 97 units. This means that there is a net gain of 2 units. This gain is considered to be normal gain because it is within the expected range of variation.
Therefore, there is no abnormal loss and normal gain.
Here is a brief explanation of each option:
- Option A: no abnormal loss and normal gain. This is the correct answer. As explained above, there is no abnormal loss and normal gain in this case.
- Option B: 2 units of abnormal gain. This is incorrect because the gain is considered to be normal gain, not abnormal gain.
- Option C: 3 units of abnormal gain. This is incorrect because the gain is only 2 units, not 3 units.
- Option D: 3 units of normal loss. This is incorrect because there is no normal loss in this case.