Question

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Lakshy established his factory for production of school bags in Pithampur. He
invested Rs. 20,00,000 in his business. He purchased raw material as input for
the production of 2,00,000 bags but when the final production data came out he
came to know that actual output was only 1,90,000 bags and at the year-end he
revealed that his profitability was @ 15% and he was able to sale 1,90,000 bags
while other competitors in market were able to sale 9,50,000 bags.
In the context of the above case
a) Calculate the amount of profit that Lakshy has earned.
b) Calculate productivity of Lakshy’s business.
c) Explain the multiple objectives discussed in the case besides profit
earning and productivity.

Answer 1

Answer:

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Explanation: