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