Question

A watch dealer incurs an expense of Rs. $150$ for producing every watch. He also incurs an additional expenditure of Rs. $30,000$, which is independent of the number of watches produced. If he is able to sell a watch during the season, he sells it for Rs.$250$. If he fails to do so, he has to sell each watch for Rs.$100$ .If he produces $1500$ watches, what is the number of watches that he must sell during the season in order to break even, given that he is able to sell all the watches produced?

Answer 1

Let he require to sell at least $x$ Watches

Then according to question $x\times 250+$ ($1500-x$)$100$ $=$ $1500\times 150+30000$

Solving we get $x=700$

So he must sell at least $700$ watches during the season