A company has an installed production capacity of 1,00,000 units and presently it is working at 70% capacity utilization. As the production capacity utilization increases, the cost per unit decreases as follows:

Capacity Utilization

Cost per Unit (Rs.)

70 %


80 %


90 %


100 %


The company has received three export orders from different sources as follows:

Source A

5,000 units at Rs. 55 per unit

Source B

10,000 units at Rs. 52 per unit

Source C

10,000 units at Rs. 51 per unit

Advise the company whether any or all of the export orders should be accepted or not.