Question

Example -
The BALAJI & Company manufactures and sells direct to
consumers 10,000 jars of Balaji JARS per month at Rs.1.25 per
Jar. The company's normal production capacity is 20,000 jars of
now per month. An analysis of cost for 10,000 jars is given below:
Rs.
Direct material
1,000
Direct labour
2,475
Power
140
Miscellaneous supplies
430
Jars
600
Fixed expenses of manufacturing, selling
7 955​

Answer 1

Answer:

The total cost for Company X to produce a batch of tools is $10,000 plus $3 per tool. Each tool sells for $8. The gross profit earned from producing and selling these tools is the total income from sales minus the total production cost. If a batch of 20,000 tools is produced and sold, then Company X’s gross profit per tool is

(A) $3.00

(B) $3.75

(C) $4.50

(D) $5.00

(E) $5.50

I keep getting an answer different from OA, and I know I must be missing something simple