A watch dealer incurs an expense of\( Rs. 150\) for producing every watch. He also incurs an additional expenditure of \(Rs. 30,000,\) which is independent of the number of watches produced. If he is able to sell watch during the season, he sells it for \(Rs. 250.\) If he fails to do so, he has to sell each watch for \(Rs. 100.\) If he produces \(1500\) watches, what is the number of watches that he must sell during the season in order to breakeven, given that he is able to sell all the watches produced?
Answer: C
Total cost to produced \(1500\) watches \(= (1500 \times 150 + 30000) = Rs. 2,55,000\)
Let he sells \(x\) watches during the season, therefore
Number of watches sold after the season \(= (1500 - x)\)
\(\Rightarrow 250 \times x + (1500 - x) \times 100 = 150x + 150000\)
Now, break - even is achieved if production cost is equal to the selling price.
\(150x + 150000 = 2,55,000\)
\(x = 700\)