A manufacturer has the following data regarding a product.
Fixed cost per month = Rs. 80,000
Variable cost per unit = Rs. 350
Selling price per unit = Rs. 500
Production capacity = 1600 units per month
If the production is carried out at 75% of the rated capacity, then monthly profit is (in Rs.)

Correct option is A

​$$\begin{aligned}&\textbf{Given Data:} \\&\text{Fixed Cost (FC): } \text{Rs. } 80{,}000 \text{ per month} \\&\text{Variable Cost per Unit (VC): } \text{Rs. } 350 \\&\text{Selling Price per Unit (SP): } \text{Rs. } 500 \\&\text{Production Capacity: } 1600 \text{ units/month} \\&\text{Production Level: } 75\% \text{ of capacity} \\[1em]&\textbf{Calculate Actual Production Quantity} \\&\text{Production Quantity } (Q) = 75\% \times 1600 = 0.75 \times 1600 = 1200 \text{ units} \\[1em]&\textbf{Compute Total Costs} \\&\text{1. Total Variable Cost (TVC):} \\&TVC = VC \times Q = 350 \times 1200 = \text{Rs. } 420{,}000 \\&\text{2. Total Cost (TC):} \\&TC = FC + TVC = 80{,}000 + 420{,}000 = \text{Rs. } 500{,}000 \\[1em]&\textbf{Calculate Total Revenue} \\&\text{Total Revenue (TR)} = SP \times Q = 500 \times 1200 = \text{Rs. } 600{,}000 \\[1em]&\textbf{Determine Monthly Profit} \\&\text{Profit} = TR - TC = 600{,}000 - 500{,}000 = \boxed{\text{Rs. } 100{,}000}\end{aligned}$$​​