Question

a wholesaler of pencils charges rupees 24 per dozen on orders of 50 dozens or less for orders in excess of 50 dozens the price is reduced by 20 paise per dozen in excess of 50 doesn't find the size of the order that maximizes his total revenue.
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Answer 1

Answer:

ANSWER

Cost of one dozen pencil=Rs.10

Cost of 150 dozen pencils=150\timesRs.10=Rs.150$$

Overhead expenses=Rs.100

Effective cost price=Rs.1500+Rs.100=Rs.1600$$

Selling price of one pencil=Rs.1.20

Selling price of one dozen pencil=Rs.1.20×12=Rs.14.40

Selling price of 150 dozen pencil=Rs.14.40×150=Rs.2160

Here S.P>C.P.So, there is a profit.

Profit=S.P−C.P=2160−1600=Rs.560

Profit percentage=

C.P

Profit×100%=1600

560×100%=35%