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: Option B
This Question Belongs to Management >> Managerial Economics
Related Questions on Managerial Economics
The emphasis of managerial economics is on
A. Bonus theory
B. Normative theory
C. System theory
D. Accounting theory
Which is not the subject of Managerial Economics?
A. Accounting Theory
B. Pricing Decision, Policies and Practices
C. Capital Management
D. Profit Management
Which is not covered under the scope of managerial economics?
A. Profit management
B. Accounting theory
C. Pricing policies
D. Production analysis
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