Question

A company receives RM45 for each unit of output sold. It has a variable cost of RM25 per item and a fixed cost of RM1600. What is its profit if it sells
a. 75 items
b. 150 items
c. 200 items

Answer 1

Answer:

200 items this is correct I think

Answer 2

Given:

Selling price of each unit            = 45

Variable cost                               = 25

Fixed cost of each unit               = 1600

To Find:

Profit for 75, 150, 200 items

Solution:

Profit = selling price - cost price

Profit for the 75 items

Selling price = 75 × 45              = 3375

Cost price     = 75 × 25 + 1600  = 3475

Loss = 100

Profit for the 150 items

Selling price  = 150 × 45              = 6750

Cost price     =  150 × 25 + 1600 = 5350

Profit             =  1400

Profit for the 200 items

Selling price    = 200 × 45                 =  9000

Cost price        = 200 × 25 + 1600     = 6600

Profit               =  2400