An Indian Manufacturer Establishes That Its Total Cost Per Item

question 5

Multiple Choice

An Indian manufacturer establishes that its total cost per item function (in Indian Rupees, INR) is given by C = 6000x^-1 + 2.5+ 0.03x. Work out the volume that minimises average cost (cost per item) .

• A) 2,000
• B) 20,000
• C) 200,000
• D) 2,000,000

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Definitions:

Statement Of Cash Flows

is a financial report detailing the inflow and outflow of cash within a company, helping to assess its liquidity.

Cash Balance

The amount of cash a company, or individual, has on hand at any given time, which indicates liquidity levels.

Financial Position

Financial Position represents the economic resources and obligations of an entity at a specific point in time, as detailed in its balance sheet.

Asset Management Ratios

Financial metrics that evaluate how efficiently a company utilizes its assets to generate revenue.