Question 80
A manufacturer of a certain item can sell all he can produceat the selling price of ₹60 each. It costs 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 makea profit ofat least ₹1000 per week is ..............
Solution
Let the number of units produced = x
Materials and labour cost of 'x' units = 40x
Total cost price = 40x + 3000
Total selling price = (40x + 3000) + 1000 = 60x
20x = 4000
x = 200
Hence, he must produce and sell 200 units.
