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Profit and Loss Percentage

A manufacture...

Question

A manufacturer has the following data regarding a product:
Fixed cost per month = Rs. 50000
Variable cost per unit = Rs. 200
Selling price per unit = Rs. 300
Production capacity = 1500 units per month
If the production is carried out at 80% of the rated capacity, then the monthly profit (in Rs.) is .
70000

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Solution

The correct option is A 70000
$Production = 0.8 \times 1500 = 1200$

$Profit = S - V - F$

$= 1200 \times 300 - 1200 \times 200 - 50000$

$= R s . 70, 000$

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