Dawood Private Limited can manufacture shoes using two different production methods. First method requires a plant that incurs a variable cost of Rs. 2000 per unit and a fixed costs of Rs. 24.000.000. The other method requires a plant that incurs less fixed costs i.e. a fixed cost of only $5,000,000, but it would require a variable cost of Rs. 3000 per unit. Under both the methods, the sales price per unit is Rs. 4000. 

At what unit output level would the two methods provide the same operating income (EBIT)?

Answer rating: 100% (QA)

Since the selling price is uniform the two methods will yield the same EBIT provided Total Costs a... View the full answer