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The manufacturer of a certain item can sell all he can produce at the selling price of Rs. 60 each. It costs him Rs. 40 in materials and labor to produce each item and he has overhead expenses of R per week in order to operate the plant. The number of units he should produce and sell in order to make a profit of at least Rs. 1000 per week, is:

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200

250

300

400

answer is A.

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Detailed Solution

Concept- Make the equation using a given statement and solve.
Given that,
Selling price of

item

Cost of materials and labor to produce an item

Expenses of a week in order to operate the plant

Let, the number of items produced in

week be

Therefore, cost of

items

And the selling price of

items

Now, also given a profit of at least

per week in the order
It implies that,

So, the number of units produced are

.
Hence, the correct answer is option 1) 200

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