Skip to content

CA Foundation · Quantitative Aptitude · Equations

The total cost of producing x units is C = 5x + 2,000 and the selling price is ₹25 per unit. If the firm wants a profit of ₹3,000, how many units must it sell?

The firm must sell 250 units. Profit is 25x − (5x + 2,000) = 20x − 2,000, and setting this to ₹3,000 gives 20x = 5,000, so x = 250. Break-even alone would be 100 units, which gives no profit.

  1. A150
  2. B250Correct
  3. C200
  4. D100

Explanation

Profit = revenue − cost = 25x − (5x + 2,000) = 20x − 2,000. Setting this equal to 3,000 gives 20x = 5,000, so x = 250. Choosing 100 comes from dividing 2,000 by 20, which gives break-even and not the target profit.

Did you get it right without looking?

One question tells you little. A timed set on Equations shows your real accuracy, how long you take and where you lose marks.

More Equations questions