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The problem states the following:

- Operating profit = Rs. 130 Lakh
- Cost of production = Rs. 200 Lakh
- Selling, General, and Administrative expenses = Rs. 50 Lakh
- Opening stock of finished goods = Rs. 40 Lakh
- Closing stock of finished goods = Rs. 30 Lakh

You are asked to calculate the total income of the unit.

The formula to calculate total income is:

\[
\text{Total Income} = \text{Operating Profit} + \text{Cost of Production} + \text{Selling, General, and Administrative Expenses} + \text{Change in Stock}
\]

Where:

\[
\text{Change in Stock} = \text{Opening Stock} - \text{Closing Stock}
\]

Let’s calculate the change in stock:

\[
\text{Change in Stock} = 40 \, \text{Lakh} - 30 \, \text{Lakh} = 10 \, \text{Lakh}
\]

Now, calculate the total income:

\[
\text{Total Income} = 130 + 200 + 50 + 10 = 390 \, \text{Lakh}
\]

Thus, the total income of the unit is **Rs. 390 Lakh**.

Do you want more details on this calculation or have any questions?

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Here are 5 related questions you might consider:

1. How is operating profit typically calculated in businesses?
2. What impact does opening and closing stock have on a company's income?
3. How would a change in administrative expenses affect the total income?
4. Can the operating profit alone give a full picture of a company's financial health?
5. What methods can businesses use to minimize production costs?

**Tip:** Always consider the difference between opening and closing stock to understand how much of the stock was used or added during a period.

The operating profit of a unit is Rs. 130 Lakh, the cost of production is Rs. 200 Lakh, Selling, General, and Administrative expenses is Rs. 50 Lakh. Opening stock of finished goods is Rs. 40 Lakh and closing stock of finished goods is Rs. 30 Lakh. Calculate the total income of the unit.

Learn how to calculate the total income of a unit using operating profit, cost of production, SG&A expenses, and stock changes. This problem involves key financial concepts and formulas suitable for college-level business students.

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