A company has a capacity of producing 1 lokh units of a certain product in a...

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A company has a capacity of producing 1 lokh units of a certain product in a month. The sales department reports that the following schedule of sales prices is possible. VOLUME OF PRODUCTION % 60 70 80 90 100 SELLING PRICE PER UNIT (2) 0.90 0.80 0.75 0.67 0.61 The variable cost of manufacture between these levels is 15 paise per unit and fixed cost 40,000, Prepare a statement showing incremental revenue and differential cost at each stage. At which volume of production will the profit be maximum? A company has a capacity of producing 1 lokh units of a certain product in a month. The sales department reports that the following schedule of sales prices is possible. VOLUME OF PRODUCTION % 60 70 80 90 100 SELLING PRICE PER UNIT (2) 0.90 0.80 0.75 0.67 0.61 The variable cost of manufacture between these levels is 15 paise per unit and fixed cost 40,000, Prepare a statement showing incremental revenue and differential cost at each stage. At which volume of production will the profit be maximum?

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Volume of Production Selling Price per UnitIncremental ... View the full answer