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Question

A manufacturer of a certain item can sell all he can produced at the selling price of Rs 60 each. It cost him Rs 40 in materials and labour to produce each item and he has overhead expenses of Rs 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 Rs 1000 per weeks is

A
250
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B
300
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C
400
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D
200
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Solution

The correct option is D 200
The number of units he should produce and sell in order to make a profit of at least Rs 1000 per weeks is 200.
Solution:
Required number of items = (3000+1000) / (60-40)
= 4000/ 20
= 200

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