Given that the company cannot sell more than 1700 units, and it will have to reduce the price by Rs. 5 for all units, if it wants to sell more than 1400 units, what is the maximum profit, in rupees, that the company can earn?
Explanation:
Profit for 1400 units = 1400 × 125 – (1400 × 100 + 9600) = 25400
Profit for (1400 + m) units = (1400 + m) × 120 - ((1400 + m) × 100 + 9600) = 18400 + 20m
Maximum value of m = 300
Maximum profit for 1400 + 300 units = 24400
∴ Maximum profit that the company can earn is 25400.
Hence, option (a).
» Your doubt will be displayed only after approval.
Help us build a Free and Comprehensive Preparation portal for various competitive exams by providing us your valuable feedback about Apti4All and how it can be improved.