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Question 71

A manufacturer of a certain item can sell all he can produce at the selling price of ₹ 60 each. It cost him ₹ 40 in materials and labour to produce each item and he has overhead expenses of ₹ 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 ₹ 1000 per week is

Solution

Let x be total items/week,

Selling Price (SP) will be 60x,

Cost Price (CP) will be [40x+4000 (extra 1000 for profit )]

So,

40x + 4000 = 60x

20x = 4000

x=200.

The number of units he should produce and sell in order to make a profit of at least ₹ 1000 per week is 200

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