Boom Box manufactures and sells various types of Speakers & Amplifiers for home use. For Speaker Model “Echo”, the variable cost of production is Rs. 2,500, and the current sales price is Rs. 5,000. Fixed costs are Rs. 3,600,000 annually with the current sales volume of 2,520units. The company is considering investing in better technology, but this will result in an additional fixed cost of Rs. 1,200,000 but variable production cost will decrease by Rs. 500. If Boom Box undertakes this investment and wants to achieve the same level of profit, how many units it may have to sell? *

Answer rating: 100% (QA)

SOLUTION The requirement is to compute the number of units to be sold in the proposed investment tha... View the full answer