If the excavation of earth is done manually then it costs Rs. 100 per cum. A machine can excavate at a fixed cost of Rs. 40,000 plus a variable cost Rs. 20 per cum. The quantity of the earth for which the cost of excavation by machine will be equal to the cost of excavation by machine will be equal to the cost by manual excavation is?

500 cum
1000 cum
1500 cum
2000 cum

LohaHridoy

4 views

2025-01-04 04:42

1 Answers

AhmedNazir

Option 1 : 500 cum

Concepts:

Let the total quantity for excavation is x cum

Cost of excavation of earth if done manually = Rs. 100 per cum

The total cost of excavation of ‘A’ cum earth if done manually, C_h = Rs. 100 × A cum

Cost of excavation by Machine, C_m = Fixed cost + variable cost

C_m = 40000 + 20 × A

It is given that cost of excavation by machine will be equal to the cost of manual excavation is

i.e. C_h = C_m

100 × A= 40000 + 20 × A

On solving, we get A = 500 cum

∴ The total quantity for excavation is 500 cum

4 views Answered 2022-09-04 04:29

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