A manufacturing firm sells a product for \(30\) Naira per unit. The variable cost per unit depends on the monthly production quantity \(P\): if \(P2000\) the cost is \(15\) Naira per unit. Fixed overhead is \(5{,}000\) Naira per month. What is the smallest integer production quantity \(P\) that will give a net profit of at least \(20{,}000\) Naira?

City Guilds Model Questions Vol1 2017 Information Technology Question 22

Practice objective / multiple choice question 22 from the 2017 City Guilds Model Questions Vol1 Information Technology examination.

City Guilds Model Questions Vol1 2017 Information Technology Objective / Multiple Choice Medium Difficulty

Question 22 CITY_GUILDS_MODEL_QUESTIONS_VOL1 • 2017 • INFORMATION_TECHNOLOGY • objective

A manufacturing firm sells a product for \(30\) Naira per unit. The variable cost per unit depends on the monthly production quantity \(P\): if \(P<1000\) the cost is \(20\) Naira per unit; if \(1000\le P\le2000\) the cost is \(18\) Naira per unit; and if \(P>2000\) the cost is \(15\) Naira per unit. Fixed overhead is \(5{,}000\) Naira per month. What is the smallest integer production quantity \(P\) that will give a net profit of at least \(20{,}000\) Naira?

Answer Options

Correct Answer A. 2001

B. 2100

C. 2000

D. 1999

Correct Answer

Correct Option:

2001

About This Question

This is City Guilds Model Questions Vol1 2017 Information Technology Question 22. It is one of the objective questions from the 2017 City Guilds Model Questions Vol1 Information Technology examination.

Difficulty level: Medium .

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