Question
A factory manufactures three products: X, Y, and Z. What
is the total profit generated from these products in a month? Statements: I: The selling price for Product X is $150, with a production cost of $90. For Product Y, the selling price is $200, and the production cost is $120. For Product Z, the selling price is $250, and the production cost is $180. The factory produces 1,000 units of X, 800 units of Y, and 600 units of Z each month. II: The profit margin for Product Y is 25% higher than that for Product X, and Product Z's profit margin is 10% higher than Product Y's. III: The total cost of production for all products last month was $120,000, and this month, it is expected to decrease by 15%.Solution
Statement I: Profit from Product X = (Selling Price - Cost) * Quantity = (150 - 90) * 1,000 = $60,000. Profit from Product Y = (200 - 120) * 800 = $64,000. Profit from Product Z = (250 - 180) * 600 = $42,000. Total profit = $60,000 + $64,000 + $42,000 = $166,000. Sufficient. Statement II: This statement provides relationships regarding profit margins but does not provide exact profit amounts without the production quantities. Not sufficient. Statement III: This provides last month's production cost but does not directly help in calculating the current month's profit without knowing sales and profit figures. Not sufficient. The answer is A.
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