Question
A company produces two products, A and B. The cost of
production for product A is ₹120 and for product B is ₹80. If the selling price for product A is ₹200 and for product B is ₹150, what is the ratio of profit from product A to product B if the company produces 300 units of A and 400 units of B?Solution
Profit from A = (Selling price - Cost price) = (200 - 120) * 300 = ₹24,000. Profit from B = (150 - 80) * 400 = ₹28,000. Ratio of profit from A to B = 24000:28000 = 24:28 = 6:7. Correct answer: D) 6:7
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