Question

How many units of Yamaha (approx.) must be sold so as to earn a profit of 20% from the sale proceeds?

• A. 20400
• B. 30700
• C. 74800
• D. 70600

Answer 1

The correct option is A 20400

Conventional approach

$\begin{array}{cccc}Model& ProjectCost\left(crores\right)& Sellingprice& Numberofunitssold\\ & & & tobreakeven\left(x\right)\\ Bajaj& 105& 58968& 17807\\ Honda& 140& 83160& 16836\\ Yamaha& 210& 123552& 16997\\ Kawasaki& 280& 135135& 20721\\ Ducati& 420& 168168& 24976\end{array}$

Number of units sold $=\frac{1.2\times 2100000000}{123552}\approx 20400$

Alternate approach

If Total project cost = Rs.330 crores , then the cost Yamaha model would be Rs. 60 crores.

If selling price of Bajaj model = Rs 21000 , then selling price of each unit would be Rs. 44000.

Number of units to break even $=\frac{60crores}{44000}\approx 14000$

When Yamaha makes a profit of $20\%$, number of units to be sold $=1.2\times 14000=16800$

When Project cost = 1155 crores and SP of Bajaj model = 58968, the number of units to be sold $=\frac{16800\times 1155\times 21000}{330\times 60000}=20580$

Hence correct option is (a).