A given company has selling price per unit of INR 18 and fixed cost as INR 8 while variable cost of manufacturing one unit comes out to be INR 6. The company gets a special order for an NGO at a reduced rice of INR 11 per unit. Should the company go for it?
|
Selling price |
INR 18 |
|
|
Less: Fixed costs |
INR 8 |
|
|
Variable costs |
INR 6 |
INR 14 |
|
Net profit per unit |
INR 4 |