The correct answer is option 1 i.e. Rs. 41600.
The weight of the diamond = ( w )
⇒ C = k × w2
⇒ C=k⋅w2=87880
⇒ (w1) (w2) = (5) / (8)
⇒ w1 = 135⋅w and w2 = 138⋅w
The cost of the first piece (weight ( w1)) is:
C1 = k⋅w12=k⋅(135⋅w)2=k⋅16925⋅w2
The cost of the second piece (weight ( w2)) is:
⇒C2=k⋅w22=k⋅(138⋅w)2=k⋅16964⋅w2
the total cost of the broken pieces is:
⇒ C1+C2=k⋅16925⋅w2+k⋅16964⋅w2=k⋅16989⋅w2
Loss = Original cost - Cost of broken pieces = 87880−(k⋅16989⋅w2)
Loss = 87880−87880⋅16989=87880⋅(1−16989)
Loss = 87880⋅16980
Loss = 16987880×80=1697030400≈41600
The loss incurred because of the breakage is approximately Rs. 41,600.