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Answer

Correct Option is Rs. 166.67

Solution:Expected profit when advertised with brand ambassador
= (40,000 -38,500)×[10,000×0.4+8000×0.4 +5000×0.3]=130.5 lakhs.
Expected profit without brand ambassador
= (40,000 –38,500)×[8000×0.4 +5000×0.4+3000×0.3] = 91.5 lakh.
Maximum sum can be paid to brand ambassador = 130.5-91.5=39 lakhs
Increase in profit of company after payment to brand ambassador = 39-24.5=14.5 lakh
Let increment in profit per unit is Rs. x

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