Question: An industry producing CNC machine tools is planning to setup an additional plant to meet the excess demand from customers. The cost details for the

An industry producing CNC machine tools is planning to setup an additional plant to meet the excess demand from customers. The cost details for the additional plant are estimated and given below. Fixed costs = Rs. 10,200 per month Variable costs = Re. 0.50 per unit produced Unit selling price = Re. 0.65 a) What volume per month is required in order to break even? b) What profit would be realized on a monthly volume of 74,000 units? c) What volume is needed to obtain a profit of Rs. 18,000 per month? d) What volume is needed to provide a revenue of Rs. 25,000 per month?

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