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A company has a capacity of producing 1 lakh units of a certain product in a month. The sales department reports that the following schedule
A company has a capacity of producing 1 lakh units of a certain product in a month. The sales department reports that the following schedule of sales prices is possible. VOLUME OF PRODUCTION SELLING PRICE PER % UNIT $ 60 0.90 70 0.80 80 0.75 90 0.67 100 0.61 The variable cost of manufacture between these levels is 15 Cents per unit and fixed cost $40,000. Prepare a statement showing incremental revenue and differential cost at each stage. At which volume of production will the profit be maximum
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