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Question Id : 11271 | Context :CUET 2022

Question

Company A produces toy trucks at a cost of Rs. 50.00 each for the first 100 trucks and Rs. 35.00 for each additional truck. If 500 toy trucks were produced by Company A and sold for Rs. 100.00 each, what was Company A's gross profit?
🎥 Video solution / Text Solution of this question is given below:

Gross Profit Calculation for Toy Trucks

Company A produced 500 toy trucks.
- Cost for first 100 trucks = Rs. 50 each
- Cost for next 400 trucks = Rs. 35 each
- Selling price per truck = Rs. 100

Step 1: Calculate total cost
Cost for first 100 trucks:
100×50=5000 Rs

Cost for remaining 400 trucks:
400×35=14000 Rs

Total cost = Rs. 5000 + Rs. 14000 = Rs. 19000

Step 2: Calculate total revenue
500×100=50000 Rs

Step 3: Calculate gross profit
Gross Profit=Total Revenue−Total Cost =50000−19000=31000 Rs

Company A's Gross Profit = Rs. 31,000

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