A factory manufacturing sewing machines has the capacity to produce 500 machines per annum. The marginal (
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Question:
A factory manufacturing sewing machines has the capacity to produce 500 machines per annum. The marginal ( variable cost) of each machine is Br. 200 and each machine is sold for 250. Fixed overheads are Br. 12,000 per annum. Calculate the break even points for out put and sales and show what profit will result if output is 90% of capacity?
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