Electrofast Ltd. is manufacturing electronic equipments in which Component-X is used, which is purchased from a local supplier at a cost of ? 40 each. In order to bring down cost and improve its competitiveness, the company has a proposal to install a machine for the manufacture of Component-X. It has the following two options:
Installation of semi-automatic machine involving annual fixed expenses of ? 22 lakh and a variable cost of ? 18 per component manufactured.
Installation of automatic machine involving an annual fixed cost of ? 40 lakh and a variable cost of ? 15 per component manufactured. Calculate components required to be produced to justify the installation of the machine
(A) 1,00,000 units & 1,60,000 units
(B) 50,000 units & 80,000 units
(C) 1,50,000 units & 1,00,000 units
(D) 1,40,000 units & 1,80,000 units

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