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An Electrical Instrument Limited used to fix its sterilizer price as follows: Per sterilizer ($.) 30 Material Labour 10 Variable overheads 10 50 Fixed
An Electrical Instrument Limited used to fix its sterilizer price as follows: Per sterilizer ($.) 30 Material Labour 10 Variable overheads 10 50 Fixed Costs 25 Profit 25 sales price 100 This data relates to 50,000 sterilizers of a year. As per the prevailing competitive conditions in the market the company has to reduce its sale price. To get the same profit how much production is required in the following cases? (a) When sale price is reduced by 10% (b) When sale price is reduced by 20%
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