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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?





Solution

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:
$$ 100 \times 50 = 5000 \text{ Rs} $$

Cost for remaining 400 trucks:
$$ 400 \times 35 = 14000 \text{ Rs} $$

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

Step 2: Calculate total revenue
$$ 500 \times 100 = 50000 \text{ Rs} $$

Step 3: Calculate gross profit
$$ \text{Gross Profit} = \text{Total Revenue} - \text{Total Cost} $$ $$ = 50000 - 19000 = 31000 \text{ Rs} $$

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



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