From the question stem:
Cost of producing x units = kx + t, therefore cost of producing 1000 units = 1000k + t.
Revenue from sale of 1 unit = k + 60, therefore revenue from sale of 1000 units = 1000(k + 60) = 1000k + 60,000.
Profit = 1000k + 60,000 - 1000k - t
= 60000 - t.
To reach this value we need t.
Stmt1:
1000(k + 60) = 150,000
=> k + 60 = 150.
=> k = 90.
Still we have no information to determine t. Hence insufficient.
Stmt2:
500k + t + 45000 = 1000k + t
=> 500k = 45000
=> k = 90.
Again, no information about t. hence insufficient.
Combining both, adds nothing to the information available.
Hence answer should be E.
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