Suggested Answer Syl12 Dec13 Paper 10

Total fixed Cost = 10,000 x 40 = ` 4,00,000 Total Cost per unit when production is 12,500 units (10,000 x 1.25) = 120 + 4,00,000 12,500 = 120 + 32 = ` 152 (e) Limitations of Inter firm comparison are: (i) Top management may not be convinced of the utility of inter-firm comparison. ................
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