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Question
If the excavation of Earth is done manually, then it costs Rs. 10 per cum. A machine can excavate at a fixed cost of Rs. 4000 plus a variable cost of Rs. 2 per cum. The quantity of earth for which the cost of excavation by machine will be equal to the cost of manual excavation is:
A.
500 cum
B.
1000 cum
C.
1500 cum
D.
2000 cum
Answer ( Option A)

500 cum

Solution

Given, 
cost of excavation by manually = Rs. 10 per cum 
Cost of the excavation by machine = Rs. 4000+ Rs. 2 per cum 
 Let the quantity of earth is 'x' for which the cost of excavation by machine will be equal to the cost of manual excavation
∴10x = 4000 + 2x 
   8x = 4000 
   x = 500 cum

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