Question 64

A 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 that plant. The number of units he should produce and sell in order to make a profit of at least Rs 1000 per week is

Solution

Le the items produced be y.

Then, Cost Price = [40y + 300]

Selling price = 60y

Profit = 1000 = 60y - (40y + 300)

y = 200

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