Question
A manufacturer produces an item at a cost of Rs. 1200
per unit. Fixed costs are Rs. 60000, and he sells the item at Rs. 2000 per unit. How many units must he sell to achieve a profit of Rs. 40000?Solution
Profit = Selling price - (Cost price + Fixed cost). Let the number of units sold be x. Profit = 2000x - (1200x + 60000). Given, profit = Rs. 40000: 2000x - 1200x - 60000 = 40000. 800x = 100000. x = 100000 ÷ 800 = 125. Correct answer: d
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