CA Foundation · Quantitative Aptitude · Equations
A tailor in Surat charges a fixed ₹2,000 per month for the shop and ₹150 per shirt stitched. He earns ₹250 revenue per shirt. How many shirts must he stitch in a month to break even?
The tailor must stitch 20 shirts. At break-even, revenue equals cost, so 250x = 2000 + 150x. The contribution per shirt is ₹100, and dividing the fixed cost of ₹2,000 by ₹100 gives 20 shirts.
- A15
- B20Correct
- C8
- D13
Explanation
Cost = 2000 + 150x; Revenue = 250x. Equating: 250x = 2000 + 150x, so 100x = 2000 and x = 20. Check: revenue 5000, cost 2000 + 3000 = 5000. Choosing 8 comes from dividing 2000 by 250, ignoring the variable cost.
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