Question

The manufacturer of a certain item can sell all he can produce at the selling price of Rs. 60 each. It costs him Rs. 40 in materials and labor to produce each item and he has overhead expenses of Rs. 3000 per week in order to operate the plant. The number of units he should produce and sell in order to make a profit of at least Rs. 1000 per week is:-
(a) 200
(b) 250
(c) 300
(d) 400

Answer 1

HINT: The formula that is used to calculate the profit earned is: Selling Price – Cost Price i.e.:-
Selling Price – Cost Price = Profit Earned

The Rs. 3000 mentioned in the question will be added to the Cost Price, because the shopkeeper is spending that money from his pocket.

Complete step-by-step answer:

Let the number of products manufactured by the manufacturer be ‘x’.

The amount that he spends on labor and materials for one item = Rs. 40

Therefore, the amount that he spends on labor and materials for all the items = Rs. (40x)

Expenses he spends per week in order to operate the plant = Rs. 3000

Therefore, total cost price = Rs. (40 x + 3000)

The selling price of one item = Rs. 60

Therefore, the selling price of all the items = Rs. (60x)

Profit earned = Selling Price – Cost Price

Profit earned per week = Rs. 1000

So, (60x) - (40x + 3000) = 1000

60x – 40x – 3000 = 1000

60x – 40x = 1000 + 3000

20x = 4000

x = \[\dfrac{4000}{20}\]

x = 200

Therefore, x = 200.

Therefore, the number unit the manufacturer needs to produce in a week to earn a profit of Rs. 1000 is 100.

Therefore, the answer of this question is (a) 200.

NOTE: One must do all the calculations in this question very carefully.
It is also very important to know the formula to calculate the profit that is as follows
Profit=Selling price-Cost price

Also not only in this question, the students must be very careful while solving any such questions as if there is any mistake in the calculus, then the answer can come out to be wrong.