1.

Two machines of the same production rate are available for use. On machine 1, the fixed cost is Rs. 100 and the variable cost is Rs. 2 per piece produced. The corresponding numbers for the machine are Rs. 200 and Rs. 1 respectively. For certain strategic reasons both the machines are to be used concurrently. The sale price of the first 800 units is Rs. 3.50 per unit & and subsequently it is only Rs. 3.00. The breakeven production rate for each machine is

A. 75
B. 100
C. 150
D. 600
Answer» B. 100


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