Home › Previous year questions › GATE 2025 PI › Question 32GATE 2025 PI – Question 32 Operations Research and Operations Management · Engineering Economy and Costing · 1 mark · Numerical answer
A toy company can make batteries with annual fixed cost ₹2,00,000 and variable cost ₹70/unit, or buy at ₹90/unit. Find annual demand at the make-or-buy switching point (integer batteries).
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Show answer and explanation Correct answer: 9995 to 10005
Explanation Equate costs: $200000+70Q=90Q$. Thus $20Q=200000$ and **Q = 10000 batteries**. Above this demand, making has lower total cost.
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