A company manufactures two types of products, Deluxe and Standard. The profit margin for Deluxe products is 25% and for Standard products is 15%. If the company wants to achieve an overall profit margin of 20%, and the total number of products sold is 1000, what is the number of Deluxe products that must be sold, and what is the resulting average profit per product if each Deluxe product sells for $100 and each Standard product for $50?
✓ Correct Answer: Option B
Let D be Deluxe, S be Standard. D+S=1000. Overall profit: 0.25D + 0.15S = 0.20(D+S). Solving, D=500, S=500. Total Revenue = (500*$100) + (500*$50) = $50,000 + $25,000 = $75,000. Total Profit = 20% of $75,000 = $15,000. Average profit per product = $15,000 / 1000 = $15.00.