Profit and Loss — An item sells for ₹ 60 each. It costs ₹ 40 per item to produce, and weekly fixed overheads are ₹ 3000. How many units must be produced and sold to earn at least ₹ 1000 profit per week?

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Solve this multiple-choice question and choose the correct option.

Accepted Answer

Introduction / Context: This is a break-even / target-profit computation using contribution analysis. Profit equals contribution per unit times quantity minus fixed cost. Solve the inequality to meet or exceed the required profit threshold. Given Data / Assumptions: Selling price (SP) per unit = ₹ 60. Variable cost (materials + labour) = ₹ 40 per unit. Fixed overheads per week = ₹ 3000. Target profit ≥ ₹ 1000 per week. Concept / Approach: Contribution per unit = SP − VC = 20. Profit = Contribution * n − Fixed. Set Profit ≥ 1000 and solve for n. Choose the smallest integer n satisfying the inequality. Step-by-Step Solution: Contribution = 60 − 40 = 20 per unit Profit = 20n − 3000 Requirement: 20n − 3000 ≥ 1000 ⇒ 20n ≥ 4000 ⇒ n ≥ 200 Minimum feasible integer n = 200 Verification / Alternative check: At n = 200: Profit = 20*200 − 3000 = 4000 − 3000 = 1000 (meets requirement). Why Other Options Are Wrong: 150, 250, 300, 400 do not represent the minimum satisfying value; only 200 is the least n with profit ≥ 1000. Common Pitfalls: Treating fixed overhead as per-unit, or using revenue instead of contribution to compute the threshold. Final Answer: 200

Profit and Loss — An item sells for ₹ 60 each. It costs ₹ 40 per item to produce, and weekly fixed overheads are ₹ 3000. How many units must be produced and sold to earn at least ₹ 1000 profit per week?

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