.4 A Company is considering expansion. F.C. is Rs. 4,20,000. It is expected to increase...
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.4 A Company is considering expansion. F.C. is Rs. 4,20,000. It is expected to increase by 1,25,000 when expansion is completed. The present plant capacity is 80,000 units a year. Capacity will increase 50 per cent with the expansion. V.C. is Rs. 6.80 per unit and is expected to go down by 0.40 per unit after expansion S.P. Rs. 16 per unit. What are the B.E points under either alternative? When alternative is better and why? Assume sales is no
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