Managerial Economics

1:

The fixed cost of production of the firm is Rs 20 crore and advertisement cost is Rs 4 crore. The firm has the contribution margin, (P-AVC) as Rs 100. In order to reach its target profit of Rs 6 crore, the firm will target an output of

A.

25,00,000 units

B.

30,00,000 units

C.

35,00,000 units

D.

40,00,000 units

 

Answer : B

Explanation :

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Option: A

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