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Direction: Read the following text and answer the questions that follow.
Kalakriti Industries is a company manufacturing stationery items. The company has set its objective of increasing revenue from ₹ 50 crores to 100 crores within 2 years. Unfortunately with the saturating domestic demand, underutilization of production capacity, etc. their objectives could not be achieved even after 3 years. In a long discussion in the meeting with all the managers, the company discussed the scope of international business and reached the decision to extend its market territory beyond the nation’s boundaries by selling goods to foreign countries. For this, the company decided to import exclusive stationery items from Japan. After identifying a suitable exporter, Kalakriti Industries sent a written request to the exporter to provide information regarding price, terms and conditions, etc. on which basis the exporter will be able to supply goods.
Q. How will an increase in the production capacity of Kalakriti Industries benefit it?
  • a)
    Economies of scale
  • b)
    Reduction in production cost
  • c)
    Improve profit margin
  • d)
    All of the above
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
Direction: Read the following text and answer the questions that foll...
Industrialization provides increased employment opportunities in small- and large-scale industries. In an industrial economy, industry absorbs underemployed and unemployed workers from the agricultural sector, thereby increasing the income of the community.
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Direction: Read the following text and answer the questions that foll...


Benefits of Increasing Production Capacity for Kalakriti Industries:

Economies of Scale:
- By increasing production capacity, Kalakriti Industries can benefit from economies of scale, which means that the average cost of production decreases as the volume of production increases.
- This can lead to lower per unit production costs, making their products more competitive in the market.

Reduction in Production Cost:
- With an increase in production capacity, Kalakriti Industries can spread fixed costs over a larger number of units, resulting in a lower cost per unit.
- This reduction in production cost can result in higher profit margins for the company.

Improved Profit Margin:
- Ultimately, by increasing production capacity, Kalakriti Industries can improve its profit margins by reducing costs and potentially increasing revenue.
- This can help the company achieve its financial objectives, such as increasing revenue from ₹ 50 crores to 100 crores within the desired timeframe.

In conclusion, increasing production capacity can bring about various benefits for Kalakriti Industries, including economies of scale, reduction in production cost, and improved profit margins. These advantages can contribute to the overall growth and success of the company in achieving its financial goals.
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Direction: Read the following text and answer the questions that follow.Kalakriti Industries is a company manufacturing stationery items. The company has set its objective of increasing revenue from ₹ 50 crores to 100 crores within 2 years. Unfortunately with the saturating domestic demand, underutilization of production capacity, etc. their objectives could not be achieved even after 3 years. In a long discussion in the meeting with all the managers, the company discussed the scope of international business and reached the decision to extend its market territory beyond the nation’s boundaries by selling goods to foreign countries. For this, the company decided to import exclusive stationery items from Japan. After identifying a suitable exporter, Kalakriti Industries sent a written request to the exporter to provide information regarding price, terms and conditions, etc. on which basis the exporter will be able to supply goods.Q. How will an increase in the production capacity of Kalakriti Industries benefit it? a)Economies of scaleb)Reduction in production costc)Improve profit margind)All of the aboveCorrect answer is option 'D'. Can you explain this answer?
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Direction: Read the following text and answer the questions that follow.Kalakriti Industries is a company manufacturing stationery items. The company has set its objective of increasing revenue from ₹ 50 crores to 100 crores within 2 years. Unfortunately with the saturating domestic demand, underutilization of production capacity, etc. their objectives could not be achieved even after 3 years. In a long discussion in the meeting with all the managers, the company discussed the scope of international business and reached the decision to extend its market territory beyond the nation’s boundaries by selling goods to foreign countries. For this, the company decided to import exclusive stationery items from Japan. After identifying a suitable exporter, Kalakriti Industries sent a written request to the exporter to provide information regarding price, terms and conditions, etc. on which basis the exporter will be able to supply goods.Q. How will an increase in the production capacity of Kalakriti Industries benefit it? a)Economies of scaleb)Reduction in production costc)Improve profit margind)All of the aboveCorrect answer is option 'D'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Direction: Read the following text and answer the questions that follow.Kalakriti Industries is a company manufacturing stationery items. The company has set its objective of increasing revenue from ₹ 50 crores to 100 crores within 2 years. Unfortunately with the saturating domestic demand, underutilization of production capacity, etc. their objectives could not be achieved even after 3 years. In a long discussion in the meeting with all the managers, the company discussed the scope of international business and reached the decision to extend its market territory beyond the nation’s boundaries by selling goods to foreign countries. For this, the company decided to import exclusive stationery items from Japan. After identifying a suitable exporter, Kalakriti Industries sent a written request to the exporter to provide information regarding price, terms and conditions, etc. on which basis the exporter will be able to supply goods.Q. How will an increase in the production capacity of Kalakriti Industries benefit it? a)Economies of scaleb)Reduction in production costc)Improve profit margind)All of the aboveCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Direction: Read the following text and answer the questions that follow.Kalakriti Industries is a company manufacturing stationery items. The company has set its objective of increasing revenue from ₹ 50 crores to 100 crores within 2 years. Unfortunately with the saturating domestic demand, underutilization of production capacity, etc. their objectives could not be achieved even after 3 years. In a long discussion in the meeting with all the managers, the company discussed the scope of international business and reached the decision to extend its market territory beyond the nation’s boundaries by selling goods to foreign countries. For this, the company decided to import exclusive stationery items from Japan. After identifying a suitable exporter, Kalakriti Industries sent a written request to the exporter to provide information regarding price, terms and conditions, etc. on which basis the exporter will be able to supply goods.Q. How will an increase in the production capacity of Kalakriti Industries benefit it? a)Economies of scaleb)Reduction in production costc)Improve profit margind)All of the aboveCorrect answer is option 'D'. Can you explain this answer?.
Solutions for Direction: Read the following text and answer the questions that follow.Kalakriti Industries is a company manufacturing stationery items. The company has set its objective of increasing revenue from ₹ 50 crores to 100 crores within 2 years. Unfortunately with the saturating domestic demand, underutilization of production capacity, etc. their objectives could not be achieved even after 3 years. In a long discussion in the meeting with all the managers, the company discussed the scope of international business and reached the decision to extend its market territory beyond the nation’s boundaries by selling goods to foreign countries. For this, the company decided to import exclusive stationery items from Japan. After identifying a suitable exporter, Kalakriti Industries sent a written request to the exporter to provide information regarding price, terms and conditions, etc. on which basis the exporter will be able to supply goods.Q. How will an increase in the production capacity of Kalakriti Industries benefit it? a)Economies of scaleb)Reduction in production costc)Improve profit margind)All of the aboveCorrect answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce. Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
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For this, the company decided to import exclusive stationery items from Japan. After identifying a suitable exporter, Kalakriti Industries sent a written request to the exporter to provide information regarding price, terms and conditions, etc. on which basis the exporter will be able to supply goods.Q. How will an increase in the production capacity of Kalakriti Industries benefit it? a)Economies of scaleb)Reduction in production costc)Improve profit margind)All of the aboveCorrect answer is option 'D'. Can you explain this answer?, a detailed solution for Direction: Read the following text and answer the questions that follow.Kalakriti Industries is a company manufacturing stationery items. The company has set its objective of increasing revenue from ₹ 50 crores to 100 crores within 2 years. Unfortunately with the saturating domestic demand, underutilization of production capacity, etc. their objectives could not be achieved even after 3 years. In a long discussion in the meeting with all the managers, the company discussed the scope of international business and reached the decision to extend its market territory beyond the nation’s boundaries by selling goods to foreign countries. For this, the company decided to import exclusive stationery items from Japan. After identifying a suitable exporter, Kalakriti Industries sent a written request to the exporter to provide information regarding price, terms and conditions, etc. on which basis the exporter will be able to supply goods.Q. How will an increase in the production capacity of Kalakriti Industries benefit it? a)Economies of scaleb)Reduction in production costc)Improve profit margind)All of the aboveCorrect answer is option 'D'. Can you explain this answer? has been provided alongside types of Direction: Read the following text and answer the questions that follow.Kalakriti Industries is a company manufacturing stationery items. 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