Question
A company manufactures and sells two products, A and B.
The cost of producing one unit of Product A is ₹50, and it is sold at a price of ₹70 per unit. The cost of producing one unit of Product B is ₹30, and it is sold at a price of ₹50 per unit. In a particular month, the company produced 1,000 units of Product A and 2,000 units of Product B. Calculate the total profit for that month.Solution
Product A: Cost per unit: ₹50 Selling price per unit: ₹70 Number of units produced: 1,000 Profit per unit = Selling price per unit - Cost per unit Profit per unit = ₹70 - ₹50 = ₹20 Total profit for Product A = Profit per unit × Number of units produced Total profit for Product A = ₹20 × 1,000 = ₹20,000 Product B: Cost per unit: ₹30 Selling price per unit: ₹50 Number of units produced: 2,000 Profit per unit = Selling price per unit - Cost per unit Profit per unit = ₹50 - ₹30 = ₹20 Total profit for Product B = Profit per unit × Number of units produced Total profit for Product B = ₹20 × 2,000 = ₹40,000 Total Profit: Total profit = Total profit for Product A + Total profit for Product B Total profit = ₹20,000 + ₹40,000 = ₹60,000 Correct Answer: c) ₹60,000
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