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A company is faced with a situation where it can either produce some item by adding additional infrastructure which will cost them Rs.15,00,000/- but unit cost of production will be Rs. 5/- each. Alternatively it can buy the same item from a vendor at a rate of Rs.20/-each.  When should the company add to its capacity in terms of demand of items per annum? Draw the diagram to show the BEP.

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