Abid spent Rs 2000 to set up a lemonade stand and the average cost is Rs 5/glass. If he sells 300 glasses at Rs 10/glass, he has a profit of .

500

No worries! We‘ve got your back. Try BYJU‘S free classes today!

-500

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

1000

No worries! We‘ve got your back. Try BYJU‘S free classes today!

-1000

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is B -500
TFC = Rs 2000
TVC = AVC x q = 300 x 5 = Rs 1500
TC = TFC + TVC= Rs 2000 + Rs 1500
= Rs 3500

TR = 300 x 10 = Rs 3000
Since TR<TC, Abid is making a loss.
Profit = TR - TC = 3000 - 3500 = -500

Suggest Corrections

Similar questions

Shalini spent Rs 2000 to set up a lemonade stand and the average cost of making lemonades is Rs 5/glass. If she sells 300 glasses at Rs 10 per glass, she has a

Shalini set up a lemonade stand, spending Rs 2000. On an average, the cost of lemonade is Rs 5/glass. How many glasses of lemonade should she sell at Rs 10/glass to break even?

Shalini set up a lemonade stand during her school's annual fest. She spent Rs 2000 to set up the stand. On an average, the cost of creating a glass of lemonade is Rs 5/glass. If she made 300 glasses of lemonade, what is her total cost?

Shalini sells lemonades at Rs 10 per glass. If she sells 300 glasses, what is her total revenue?

Vysakh set up a samosa stand. His fixed cost is Rs 1500. His average variable cost is Rs 10/samosa. If he sells 200 samosas at Rs 20, what is his profit?

Join BYJU'S Learning Program

Abid spent Rs 2000 to set up a lemonade stand and the average cost is Rs 5/glass. If he sells 300 glasses at Rs 10/glass, he has a profit of .

The correct option is B -500TFC = Rs 2000 TVC = AVC x q = 300 x 5 = Rs 1500 TC = TFC + TVC= Rs 2000 + Rs 1500 = Rs 3500 TR = 300 x 10 = Rs 3000 Since TR<TC, Abid is making a loss. Profit = TR - TC = 3000 - 3500 = -500

The correct option is B -500
TFC = Rs 2000
TVC = AVC x q = 300 x 5 = Rs 1500
TC = TFC + TVC= Rs 2000 + Rs 1500
= Rs 3500

TR = 300 x 10 = Rs 3000
Since TR<TC, Abid is making a loss.
Profit = TR - TC = 3000 - 3500 = -500