LS1275: Break-even production of a firm is 4,000 units, its total fixed cost is Rs. 40,000 and the variable cost per unit is Rs. 20

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Question: Break-even production of a firm is 4,000 units, its total fixed cost is Rs. 40,000 and the variable cost per unit is Rs. 20.

(a)Find out the price of the product.

(b)What should be the firm’s output to earn profit contribution of Rs. 20,000?


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