New SIDBI Grade A New Batch Starts on Nov 18

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    Question

    A manufacturer produces three types of products: X, Y, and Z. The production costs are ₹200, ₹350, and ₹500 per unit, respectively. In a month, the manufacturer produces 150 units of X, 120 units of Y, and 80 units of Z. If the company offers a 20% discount on the selling price of each product, which is set at ₹300 for X, ₹500 for Y, and ₹750 for Z, what is the total profit or loss made by the manufacturer for the month?

    A ₹20,000 profit Correct Answer Incorrect Answer
    B ₹5,000 profit Correct Answer Incorrect Answer
    C ₹7,000 loss Correct Answer Incorrect Answer
    D ₹10,000 loss Correct Answer Incorrect Answer
    E ₹1,000 profit Correct Answer Incorrect Answer

    Solution

    Solution: Total production cost = (150 * 200) + (120 * 350) + (80 * 500) = ₹30,000 + ₹42,000 + ₹40,000 = ₹112,000. Selling price after discount for X = 300 - (20% of 300) = 300 - 60 = ₹240. Selling price after discount for Y = 500 - (20% of 500) = 500 - 100 = ₹400. Selling price after discount for Z = 750 - (20% of 750) = 750 - 150 = ₹600. Total selling price = (150 * 240) + (120 * 400) + (80 * 600) = 36,000 + 48,000 + 48,000 = ₹132,000. Total profit = Total selling price - Total production cost = 132,000 - 112,000 = ₹20,000 profit. Correct answer: A) ₹20,000 profit

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