Production and Industrial Engineering
GATE PI topic:engineering-economy-cost PYQs
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Question 32
Open questionPINAT1 markNeeds review
Two options are available to meet the annual demand of batteries in a toy company. In option 1, batteries are manufactured in the plant having fixed cost of Rupees 2,00,000 and a variable cost of Rupees 70 per unit. Option 2 consists of buying batteries from the market at a price of Rupees 90 per unit. The annual demand (in number of batteries) at which the company should switch from buying to making the batteries in the plant is________. (Answer in integer)
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