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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 a 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 is able to sell only $1200$ out of the $1500$ watches he has made in the season. then in the season he has made a profit of

  1. Rs. $90,000$
  2. Rs. $75,000$
  3. Rs. $45,000$
  4. Rs. $60,000$
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Production Cost of 1500 watches =  1500 * 150 + 30000 = Rs 255000

Amount Realized on the sale of 1500 watches = 1200 * 250 + 300 * 100 = Rs 330000

Profit earned = 330000 - 255000 = Rs 75000

Option B is the Correct Answer.

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