Question

2.
a) A Ltd. has been offered a choice to buy a machine between M 1 and M 2. The
following data are available:
M1
M2
Annual output in units
10,000
10,000
Fixed Cost
60.000
32.000
Profit at above level
60,000
48,000
The market price of the product is expected to be Rs.20 per
unit.
You are required to compute:
(1) Break Even Point of each Machine.
(ii) The level of sales at which the machine is earn equal profit.
(iii) The range of sales at which one is more profitable from the other.​

Answer 1

Answer:

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