A company has the capacity of production of 80000 units and presently it sells 20000 units at Rs 100 each. The demand is sensitive to selling price and it has been observed that every reduction of Rs 10 in selling price the demand is doubled. What should be the target cost at full capacity it profit margin on sales is taken at 25%? a. Rs 48 lakhs b. Rs 52 lakhs c. Rs 50 lakhs d. Rs 58 lakhs
A company has the capacity of production of 80000 units and presently it sells 20000 units at Rs 100 each. The demand is sensitive to selling price and it has been observed that every reduction of Rs 10 in selling price the demand is doubled. What should be the target cost at full capacity it profit margin on sales is taken at 25%? a. Rs 48 lakhs b. Rs 52 lakhs c. Rs 50 lakhs d. Rs 58 lakhs
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A company has the capacity of production of 80000 units and presently it sells 20000 units at Rs 100 each. The demand is sensitive to selling price and it has been observed that every reduction of Rs 10 in selling price the demand is doubled. What should be the target cost at full capacity it profit margin on sales is taken at 25%?
a.
Rs 48 lakhs
b.
Rs 52 lakhs
c.
Rs 50 lakhs
d.
Rs 58 lakhs
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