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Choose the correct option.
A company sells x packets of biscuits each day at ₹ 10 a packet. The cost of manufacturing these…
A company sells $x$ packets of biscuits each day at ₹ 10 a packet. The cost of manufacturing these packets is ₹ 5 per packet plus a fixed daily overhead cost of ₹ 700. What will be the profit function?
- (a)$6x - 400$
- (b)$5x - 700$
- (c)$10x - 500$
- (d)$5x - 10$
Answer
Answer
Correct option: (b)
Answer: (b) $5x - 700$
Revenue $=10x$, cost $=5x+700$.
Profit $=10x-(5x+700)=5x-700$.