Treno Ltd panning to establish an additional plant for expanding its operations in the country for the robot product, the committe identified mumbai and delhi as the potential areas to setup. Now coming to the costs the mumbai has fixed cost around 77,00,000 and the variable. Cost is Rs. 666 per unit, whereas delhi has 87,00,000 and variable cost is Rs. 543 per unit.  Each robot product is selled at Rs . 800 and the expected sales is around 11,000 per year. Now decide which of the following locations  will be more profitable

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Treno Ltd panning to establish an additional plant for expanding its operations in the country for the robot product, the committe identified mumbai and delhi as the potential areas to setup. Now coming to the costs the mumbai has fixed cost around 77,00,000 and the variable. Cost is Rs. 666 per unit, whereas delhi has 87,00,000 and variable cost is Rs. 543 per unit.  Each robot product is selled at Rs . 800 and the expected sales is around 11,000 per year. Now decide which of the following locations  will be more profitable.?

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