Case Study 1: A company produces 200 units of a gadget at Rs 250 each and sells them at Rs 300 each.
Q1. Total revenue earned?
Answer: Rs 60,000
Revenue = 200 × 300 = Rs 60,000
Q2. Total cost of production?
Answer: Rs 50,000
Cost = 200 × 250 = Rs 50,000
Q3. Profit earned?
Answer: Rs 10,000
Profit = Revenue – Cost = 60,000 – 50,000 = Rs 10,000
Q4. Profit percent?
Answer: 20%
Profit % = (Profit / Cost) × 100 = (10,000 / 50,000) × 100 = 20%
