Question
A company earns ₹3000 from selling 200 units of a
product. If the fixed cost is ₹1000 and the variable cost per unit is ₹5, what is the profit or loss?Solution
Total cost = Fixed cost + (Variable cost per unit × Number of units) = 1000 + (5 × 200) = 1000 + 1000 = ₹2000. Profit = Revenue - Total cost = 3000 - 2000 = ₹1000. Answer: b) ₹1000 profit.
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