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Draw a suitable diagram to represetn the...

Draw a suitable diagram to represetn the following information :

Also whow the profit of loss as the case may be.

Text Solution

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First of all shall calculate the cost (wages, materials, miscellaneous) and profit per unit as the following table :

[Note: Negative profit is regarded as loss.]
An appropriate diagram for representing this data would be the reactangles whose widths are in the ratio of the quantities sold, i.e, 20 : 30, i.e., 2 : 3. Selling prices would be represented by the corresponding heights of the rectangles with various costs (wages, materials, miscellaneous) and profit or loss represented by the various divious of the rectangles as shown in the diagram given on next page :

[Note: In case of profit , i.e., when SP `gt` CP, the entire rectangle will lie above the X-axis, But in case of loss, i.e., when the X-axis which will reflect the loss incurred, i.e., it cannot be recoverd throught sales. ]
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