Question

If output is 50 units, price per unit is Rs.10, fixed cost is Rs.110 and variable cost is Rs.150, what is the amount of profit?

Answer 1

Answer:

=50×10

=500

=150+110

=260

500-260

=240

Answer 2

Explanation:

Given that

The output is 50 units

Price per unit is Rs 10

= 50×10

The total cost of units= 500

'Fixed cost' is Rs 110

Variable cost is Rs 150

Now we need to add the 'fixed cost and Variable cost'

• Fixed cost means it will not vary at any time
• Variable cost means it will vary at any time  

=110+150

=260

If we subtract fixed cost, Variable cost from the total cost of units will get the amount of profit

= 500-260

=240

The 'amount of profit' is 240