Question

The marketing manager of Tulip Corporation has determined that a market exists for a telephone with a sales price of Rs. 19 per unit. The production manager estimates the annual fixed costs of producing between 40,000 and 80,000 telephones would be Rs. 344,000.     Assume that Tulip desires to earn a Rs. 116,000 profit from the phone sales. How much can Tulip afford to spend on variable cost per unit if production and sales equal 46,000 phones.     b)    Naylor Company produces a product that has a variable cost of Rs. 13 per unit; the product sells for Rs. 28 per unit. The company's annual fixed costs total Rs. 375,000; it had net income of Rs. 75,000 in the previous year. In an effort to increase the company's market share, management is considering lowering the selling price to Rs. 25 per unit.          Required: If Naylor desires to maintain net income of Rs. 75,000, how many additional units must it sell to justify the price decline​

Answer 1

BRO YOUR QUESTION IS TOO LONG I DID NOT UNDERSTAND SORRY!