QUESTION

CSAT

Hard

Maths

Prelims 2018

Consider the following figures A and B:

The manufacturing cost and projected sales for a product are shown in the above figures A and B respectively. What is the minimum number of pieces that should be manufactured to avoid a loss?

Select an option to attempt

Explanation

To avoid a loss, the selling price (SP) must be greater than or equal to the cost price (CP).

In the minimum case, $SP = CP$ .

Thus, the selling price should be equal to the cost price.

For 2000 pieces, the selling price is $2000 \times 350 =$ Rs. 7 lakh.

The cost price for 2000 pieces is also Rs. 7 lakh.

Therefore, the best answer is A.

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