Question

A manufacturer of a certain item can sell all he can produce at the selling price of ₹ 60 each. It cost him ₹ 40 in materials and labour to produce each item and he has overhead expenses of ₹ 3000 per week in order to operate that plant. The number of units he should produce and sell in order to make a profit of at least ₹ 1000 per week is

• A. 300
• B. 400
• C. 250
• D. 200

Answer 1

Answer: (D)

200

Answer 2

Let x be total $\frac{items}{week}$,

Selling Price (SP) will be 60x,

Cost Price (CP) will be [40x+4000 (extra 1000 for profit)]

So,

40x + 4000 = 60x

20x = 4000

x=200.

The number of units he should produce and sell in order to make a profit of at least $₹$1000 per week is 200 So the correct option is (D)