25. A small family-run engineering company has a production capacity of 9000units per year. Market research suggests that the market will take up all ofthis output at a price of Rs. 400. The firm’s cost structure is as follows:a. Direct labour Rs. 75 per unit.b. Raw materials Rs. 25 per unit.c. Other variable costs Rs. 50 per unit.d. Total fixed cost are Rs. 1350000 a year.Calculate AFC, AVC, ATC, TR and profits, if the factors produced itscapacity output.

25. A small family-run engineering company has a production capacity o

1.	25. A small family-run engineering company has a production capacity of 9000units per year. Market research suggests that the market will take up all ofthis output at a price of Rs. 400. The firm’s cost structure is as follows:a. Direct labour Rs. 75 per unit.b. Raw materials Rs. 25 per unit.c. Other variable costs Rs. 50 per unit.d. Total fixed cost are Rs. 1350000 a year.Calculate AFC, AVC, ATC, TR and profits, if the factors produced itscapacity output.
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