A shopkeeper incurs a cost of ₹ 122 for the production of each article. He also incurs an additional expenditure of ₹ 27,000 which has no relation to the number of articles produced. He must sell the article for ₹ 225 during the season. If he fails to do so he will have to sell each item at ₹ 75. If he produces 1500 items and is able to sell all the items produced, how many items should he sell during the season so that he makes no profit or loss?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 650.
Total expenditure on the items = (1500 × 122) + 27000
⇒ 183000 + 27000 = 210000
Let the number of items sold during the season by x.
According to the given question,
225x + 75(1500 - x) = 210000
⇒ 225x + 112500 - 75x = 210000
⇒ 150x = 97500
⇒ x = 650