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solve if you know 100% only models are available The following information are available with respect to Model A Model B Output p.a. 10,000 10,000

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solve if you know 100% only

models are available The following information are available with respect to Model A Model B Output p.a. 10,000 10,000 Fixed costs p.a. (I) 30,000 16,000 Profit at 100% capacity (5) 30.000 24,000 Both the machines will produce identical products. The annual market demand for the product is 10,000 units @ 10 Per unit. Required: (1) The level of sales at which both are equally profitable; (ii) The range of sales at which one is more profitable than the other. (4+4 = 8 marks) Answers

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