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ILLUSTRATION 6.2 Modern Sewing Machines Co. Manufactures hand-operated sewing machines. Prepare a schedule showing the differential costs and incremental revenue at each stage from the
ILLUSTRATION 6.2 Modern Sewing Machines Co. Manufactures hand-operated sewing machines. Prepare a schedule showing the differential costs and incremental revenue at each stage from the following data. At what volume the company should set its level of production? Total Output (No. in lakhs) 0.6 1.2 1.8 2.4 3 3.6 Selling Price Total Total per Machine Semi-fixed Cost Variable Cost ($) ($ in lakhs) ($ in lakhs) 240 30 83.6 220 30 163.6 200 34 255.6 180 34 315.6 160 40 355.6 140 40 380.6 Fixed Cost ($ in lakhs) 28.4 28.4 28.4 28.4 28.4 28.4
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