Discussion

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).

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