Question

The cost of production is directly proportional to the number of units produced. If the cost of production is ₹ 5,000 when 25 units are produced, then find the cost of production when 100 units are produced .

• A. ₹ 20,000
• B. ₹ 10,000
• C. ₹ 7,500
• D. ₹ 2,500

Answer 1

The correct option is A ₹ 20,000

Given, the cost of production (C) is directly proportional to the number of units produced (N).
$\Rightarrow C\propto N$
Let the constant of variation be k.
$\Rightarrow C=kN$
Given, at C = ₹ 5,000, N = 25.
$So,k=\frac{C}{N}=\frac{5,000}{25}=200.$
Hence, the cost of production when 100 units are produced (i.e N = 100) = kN = (200)(100) = ₹ 20,000.