Question $3$:

Sagar Pvt$.$ Ltd$.$ is setting up an Edible oil manufacturing project. Details about its installed capacity, capacity utilization, inventory norms and selling price are as follows:

The project's installed capacity is $5000$ metric tons $($MT$)$ per annum.

Expected capacity utilization will be $70\%$ in the first year, $75\%$ in the second year and $80\%$ in the third year and onwards.

It is estimated that the company will have to maintain a stock$-$in$-$process inventory of $0\mathrm{.}5$ months and a finished items inventory of $1\mathrm{.}5$ months.

Estimated selling price is $3\mathrm{.}00$ lakh per MT$.$

Determine the production quantity at estimated capacity utilization and respective sales revenue for the first six years of operations. $[20$ Marks$]$