SUBJECT NAME: PRODUCTION AND OPERATION

DO NOT USE MS EXCEL OR ANY OTHER SOFTWARE FOR CALCULATION, ANSWERS WILL NOT BE ACCEPTED

HANDWRITTEN ANSWER APPRECIATED

NO FURTHER INFORMATION AVAILABLE REGARDING THE QUESTION.

A factory has the capacity to produce 300 units of the product per month. The product is sold at Rs.150/unit and the variable cost is Rs.100/unit. The fixed expenses are estimated to be Rs.96,000 per year a) Determine the break-even quantity b)Estimate the profit if 240 units are produced per month c) The sales to be made to earn a profit of Rs. 7000/month