Discussion

Explanation:

Profit = Sales Revenue – Total cost

Profit at 30 units = (150 × 30) – (800 + 2500)

                               = 4500 – 3300

                               = Rs. 1200

∵ Second shift charges will be incurred as the cost when the number of widgets are more than 30.

Profit at 40 units = (150 × 40) – (800 + 1200 + 3700)

                               = 6000 – 5700

                               = Rs. 300

Profit at 50 units = (150 × 50) – (800 + 1200 + 5000)

                              = 7500 – 7000

                              = Rs. 500

Profit at 60 units = (150 × 60) – (800 + 1200 + 6700)

                              = 9000 – 8700

                              = Rs. 300

∴ Profit at 30 units will be maximum.

Hence, option (a).

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