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A company is introducing new product.It contains three alternatives to make the product with the following costs.
The forecasted demand estimates are as follows:
The minimum total cost is ____________
  • a)
    76300
  • b)
    76300
Correct answer is between ' 76300, 76300'. Can you explain this answer?
Verified Answer
A company is introducing new product.It contains three alternatives t...
= 1500 × 0.10 + 2000 × 0.30 + 2500 × 0.25+3000 × 0.15 + 3500 × 0.12 + 4000 × 0.08
Q = 2565
Total cost = FC + VC × Q
TC)A = 25,000 + 20 × 2565
Rs. 76,300
TC)B = 45,000 + 18 × 2565
= Rs. 91,170
TC)C = 52,000 + 15 × 2565
= Rs. 90,475
Min cost = 76, 300
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A company is introducing new product.It contains three alternatives to make the product with the following costs.The forecasted demand estimates are as follows:The minimum total cost is ____________a) 76300b) 76300Correct answer is between ' 76300, 76300'. Can you explain this answer?
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