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Explanation:

The new reduced price = 0.95 × 125 = 118.75

Profit = 118.75x – 100x – 9600 = 18.75x – 9600

Profit will be maximum when 18.75x is maximum. As the maximum production capacity is 2000 units, profit is maximum when 2000 units are produced.

Hence, option (e).

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