A company has a capacity of producing 50,000 units of a certain product in a month. The sales department reports that the following schedule of sale prices is possible:

The variable cost of manufacture between these levels is Re 0.20 per unit and the fi xed cost is Rs 15,000. At which volume of production will the profi t be the maximum?

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Volume of Production Selling Price Per Unit Re 60% 0.95 70% 0.90 80% 0.85 90% 0.75 100% 0.60