24 September 2015
9. A company manufactures a product currently utilizing 80% capacity with a turnover of 32000 units at a selling price of Rs: 25 per unit. The variable cost of the product is Rs: l7.S per unit. Fixed cost amounts to Rs: 1 50000 up to 80% of level of output and there will be an additional cost of a supervisor amounting to Rs: 20000 beyond that level. Calculate Activity level (96) at break-even point.