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How many units company must produce and sell

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Question - A company manufactures a product whose marginal cost Rs 3. It has fixed cost of Rs 25000 per annum. Present production and sales is 50000 units and selling price Rs 5 per unit. Any sale beyond 50000 units is possible only if the company reduces 20% of its current selling price. However reduced price applies only to additional units. The company wants a target profit of Rs 100000. How many units company must produce and sell if it wants to achieve the target profit?

Reference no: EM132627900

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