Question

If per unit variable cost of a product is Rs.8 and fixed cost is Rs 5000 and it is sold for Rs 15 per unit, profit in 1000 units is.......

a.. rs 7000
b. rs 2000
c. rs 25000
d. rs 0​

Answer 1

a.. rs 7000

Because 15×1000=15000 it is SP when selling 1000units in the rate of Rs 15/unit& 8×1000=8000 this is cp when buying 1000 units in the rate of Rs 8/unit.

So,by formula of profit,

Rs (15000-8000)=Rs7000