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This question belongs to Management Managerial Economics

Managerial Economics

?

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 & Solution

Correct Answer: Option B

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