Fixed costs are Rs. 80,000; and at the present volume of 1,000 customers, variable costs are Rs.

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Fixed costs are Rs. 80,000; and at the present volume of 1,000 customers, variable costs are Rs. 25,000 and profits are Rs. 20,000.

(a) What is the break-even point volume?

(b) Assuming that fixed costs remain constant, how many additional customers will be required for the agency to increase profit by Rs.1000?

[Ans.

(a) 800 units

(b) 10 customers]

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Operations Management

ISBN: 9788122425871

2009 Edition

Authors: Kumar, S. Anil

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