Rtp n14 paper 5 clarification on q1

Manvinder Singh Kalra (Manvinder2020@gmail.com)   (78 Points)

04 December 2014  
Extracts from Q1 ---- On reviewing previous performance it is revealed that 3% of the bats supplied to customers were returned for free replacement because of fault. Can anyone please explain why in the answer given on Page 12 -----Number of returned bats which are replaced free of cost = 30000 units X 3/97