1.

'Best Bulbs Pvt. Ltd.' was manufacturing good quality LED bulbs and catering to the local market. The current production of the company is 800 bulbs a day. Sumit, the marketing manager of the company, surveyed the market and decided to supply the bulbs to five-star hotels also. He anticipated the higher demand in the future and decided to buy a sophisticated machine to improve further the quality and quantity of the bulbs produced. Identify the factors affecting fixed capital requirements of the company.

Answer»

'Best Bulbs Pvt. Ltd.' was manufacturing good quality LED bulbs and catering to the local market. The current production of the company is 800 bulbs a day. Sumit, the marketing manager of the company, surveyed the market and decided to supply the bulbs to five-star hotels also. He anticipated the higher demand in the future and decided to buy a sophisticated machine to improve further the quality and quantity of the bulbs produced.

Identify the factors affecting fixed capital requirements of the company.



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