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.)|
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.
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