MCQ: Mechanical Engineering, GATE GATE Notes | EduRev

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GATE : MCQ: Mechanical Engineering, GATE GATE Notes | EduRev

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Two machines of the same production rate are available for use. On machine 1, the fixed cost is Rs. 100 and the variable cost is Rs. 2 per piece produced. The corresponding numbers for the machine 2 are Rs. 200 and Re. 1 respectively. For certain strategic reasons both the machines are to be used concurrently. The sale price of the first 300 units is Rs. 3.50 per unit and subsequently it is only Rs. 3.00. The breakeven production rate for each machine is: 
  • a)
    75                        
  • b)
    100                      
  • c)
    150                      
  • d)
    600
Correct answer is option 'A'. Can you explain this answer?

Ref: https://edurev.in/question/590704/Two-machines-of-the-same-production-rate-are-avail

MCQ: Mechanical Engineering, GATE GATE Notes | EduRev
MCQ: Mechanical Engineering, GATE GATE Notes | EduRev

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