Question

    Direction: A manufacturing company produces three products: A, B, and C. The following table summarizes the production details for each product over a period of 5 months, including the cost price (CP), selling price (SP), and units produced each month.

    If the company plans to increase the production of

    Product B by 20% in the next month while keeping the cost price the same, what will be the new total production and the expected selling price for Product B? How does this affect the overall profit?
    A a) New Production 480 units, Total SP ₹175,000 Correct Answer Incorrect Answer
    B New Production 480 units, Total SP ₹180,000 Correct Answer Incorrect Answer
    C New Production 480 units, Total SP ₹210,000 Correct Answer Incorrect Answer
    D New Production 480 units, Total SP ₹168,000 Correct Answer Incorrect Answer
    E New Production 480 units, Total SP ₹150,000 Correct Answer Incorrect Answer

    Solution

    New Production for Product B = 400 + (20% of 400) = 400 + 80 = 480 units Total SP for Product B = 480 × 350 = ₹168,000

    Practice Next

    Relevant for Exams: