A battery dealer incurs an expense of Rs. 150 for producing every battery. He also incurs an additio

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10 Sep 2020 Profit & Loss

A battery dealer incurs an expense of Rs. 150 for producing every battery. He also incurs an additional expenditure of Rs. 30,000, which is independent of the number of batteries produced. If he is able to sell a battery during the season, he sells it for Rs. 250. If he fails to do so, he has to sell each battery for Rs. 100.If he produces 1500 batteries, what is the number of batteries that he must sell during the season in order to break-even, given that he is able to sell all the batteries produced?

OPtion

1) 780
2) 700
3) 760
4) 800
5) 909
6) 1000
7) 900
8) 1100
9) 880
10) None of these

Solution

Total cost to produce 1500 battery = (1500 × 150 + 30000) = Rs. 2,55,000

Let he sells x batteries during the season, therefore

number of batteries sold after the season = (1500 – x)

∴Revenue earned on the sale of 1500 watches

= 250 × x + (1500 – x) × 100 = 150x + 150000

Now, break-even is achieved if production cost is equal to the selling price.

∴ 150x + 150000 = 2,55,000 ⇒x = 700

Correct Option: 2 Best Solution (4)

KALUVAI MOURYA SAI GANESH   4 years AGO

by verifying from answers ......we will get it..

Like? Yes (1) | No   

Rahul Bathla   4 years AGO

Production cost=30000+1500×150=255000
Breaking even implies SP=CP
250x+(1500-x)*100=255000
X=700
Option 2 is correct

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RAMADURAI NATESAN   4 years AGO

Let a be no.of batteries sold at 250 and b be at 100.then,
a + b =1500 and 250 a + 100 b = 255000.
Solving a = 700

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Varun   4 years AGO

Expenditure = 30000+1500*150
250x+100y = 255000
x+y=1500
=> x = 700
= Option (2)

Like? Yes | No (1)