A company manufactures a product whose marginal cost Rs 3. It has fixed cost of Rs 25000
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Question:
A company manufactures a product whose marginal cost Rs 3. It has fixed cost of Rs 25000 per annum. Present
production and sales is 50000 units and selling price Rs 5 per unit. Any sale beyond 50000 units is possible only if
the company reduces 20% of its current selling price. However reduced price applies only to additional
units . The
company wants a target profit of Rs 100000. How many units company must produce and sell if it wants to
achieve the target profit
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