M/s. ABC and Co. is planning to use the most competitive manufacturing process to produce an ultramodern sports shoe. They can use a fully automatic robot – controlled plant with an investment of Rs.100 million; alternately they can go in for a cellular manufacturing that has a fixed cost of Rs.80million. There is yet another choice of traditional manufacture that needs an investment of Rs.75 million only. The fully automatic plant can turn out a shoe at a unit variable cost of Rs.25 per unit, whereas the cellular and the job shop layout would lead to a variable cost of Rs.40 and Rs.50 respectively. The break even analysis shows that the break even quantities using automatic plant Vs. traditional plant are in the ratio of 1:2. The per unit revenue used in the break even calculation is:
(a) Rs. 75 (b) Rs. 87
(c) Rs. 57 (d) Rs. 55