Question

The manufacturer of a certain item can sell all he can produce at the selling price of $Rs.60$ each. It costs him $Rs.40$ in materials and labour to produce each item and he has overhead expenses of $Rs.3000$ per week in order to operate the plant. The number of units he should produce and sell in order to make a profit of at least $Rs1000$ per week, is :

• A. $200$
• B. $250$
• C. $300$
• D. $400$

Answer 1

Answer: (A)

$200$

Let the no of units sold be $x$ per week.

$60x$ = sales should include all the expenses and profit required to balance things out.

$60x=1000+40x+3000$

$20x=4000$

$x=200$