Question

In a factory, the cost of manufacturing $x$ article is $Rs20+2x$ and the selling price of $x$ articles is $Rs\left(2.5\right)x$. Draw the graph and determine.
(i) Number of articles to be manufactured and sold to reach break-even point (no profit and no loss situation);
(ii) The profit made when $60$ articles are manufactured and sold

Answer 1

Cost of manufacturing $x$ article $=C.P=Rs2x+20$

Selling price of $x$ article $=S.P=Rs2.5x$

(1) Number of loss (or) number of profit i.e $C.P=S.P$

$2x+20=2.5x$

$\therefore x=40$

Number of articles sold to reach break even point $=40$

(2) Number of articles $x=60$

$C.P=2x+20=2\left(60\right)+20$

$=140$

$S.P=2.5x=2.5\left(60\right)=150$

$Profit=S.P-C.P=Rs10$