Mobile handset manufacture company has a motive of 25% profit. It starts manufacturing mobile handsets with fixed cost of Rs. 100,00,000/-. The variable cost for one handset is Rs. 33,00/-. The initial target was to sale 10000 mobile handsets annually. (A) What will be the selling price of one handset for achieving 25% profit. (B) Due to the Govt. policy, the demand of the mobile handsets are increased. Now, the company wants to sale 6000 mobile handsets more to the prior one. What will be the selling price now keeping the profit same? Assume the missing data.

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
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A Mobile handset manufacture company has a motive of 25% profit. It starts manufacturing mobile handsets with fixed cost of Rs. 100,00,000/-. The variable cost for one handset is Rs. 33,00/-. The initial target was to sale 10000 mobile handsets annually. (A) What will be the selling price of one handset for achieving 25% profit. (B) Due to the Govt. policy, the demand of the mobile handsets are increased. Now, the company wants to sale 6000 mobile handsets more to the prior one. What will be the selling price now keeping the profit same? Assume the missing data.
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