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