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
SELLING PRICE PER UNIT
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?