Question

A manufacturer of a certain item can sell all he can produce at the selling price of ₹60 each. It costs him

₹40 in materials and labour to produce each item and he has overhead expenses of ₹3000 per week in

order to operate that plant. The number of units he should produce and sell in order to make a profit of at

least ₹1000 per week is​

Answer 1

Answer:

Number of units = 200

Step-by-step explanation:

SP = Rs 60

Material Cost = Rs 40

Each product gain ( without including overhead expenses) = 20

Overhead Expenses per week = Rs 3000

$20x - 3000 = 1000$

x= 200

Answer 2

Answer:

Therefore, the manufacturer must produce 200 items.

Step-by-step explanation:

Suppose, the manufacturer must produce 'x' items

The overhead expenses of a week = Rs 3000

then, the tatal cost of 'x' items, Cost price (c.p) = Rs (40x + 3000)

Selling price (s.p) = Rs 60x

Therefore,

60x - (40x + 3000) = 1000

60x - 40x - 3000 = 1000

20x = 1000 + 3000

20x = 4000

x = $\frac{4000}{20}$ = 200

Therefore, the manufacturer must produce 200 items.