Question
A bakery produces two types of cakes, chocolate and
vanilla. The production cost for a chocolate cake is ₹200 and for a vanilla cake is ₹150. If the bakery produces 120 chocolate cakes and 80 vanilla cakes in a week, and sells them at a profit margin of 40% on the selling price of ₹350 for chocolate and ₹250 for vanilla, what is the total revenue generated from selling both types of cakes?Solution
Selling price of chocolate cake = ₹350. Selling price of vanilla cake = ₹250. Total revenue from chocolate cakes = 120 * 350 = ₹42,000. Total revenue from vanilla cakes = 80 * 250 = ₹20,000. Total revenue from both = 42,000 + 20,000 = ₹62,000. Correct answer: C) ₹62,000
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