Per unit variable

Capacity
cost
200000
275
100000
337
65000
412

Fixed Cost
15000000
9000000
3750000

2014

2015

Competitors enter
Option A
Option B
Option C

does not enter

344095700
352407516
346397616

2014

A
Year

Rs. 1000

2014

35625000
37825000
40025000
38773750
37584925
36455775
35383000
34363850
296036300
A's Profit

2015
2016
2017
2018
2019
2020
2021

2014
2015
2016
2017
2018
2019
2020
2021

Rs. 800

37687500
40107500
42527500
41151125
39843500
38601325
37421300
36300125
313639875

Rs. 1000

Rs. 800

39375000
45175000
50975000
47676250
44542075
41565225
38737000
36050150
344095700

28312500
32932500
37552500
34924875
32428500
30057075
27804300
25663875
249676125

Rs. 1000

Rs. 800

Rs. 700

Rs. 600

42225000 47670000
45129000 51154800
48033000 54639600
46381350 52657400
44812200 50774750
43321425 48985875
41905450 47286650
40560150 45672125
352367575 398841200
Rs. 700

Rs. 600

27075000 23610000
31563000 27728400
36051000 31846800
33498450 29504200
31073400 27279250
28769475 25165125
26581150 23156950
24502050 21248875
239113525 209539600

B
Year
2014
2015
2016

34275000
36971000
39667000

36802500
39768100
42733700

Rs. 700

42363000
45921720
49480440

Rs. 600

49035600
53306064
57576528

2015

38133650
36676799
35293077
33978440
32729518
287724484

41047015
39444580
37922351
36476284
35102335
309296865

47456418 55147432
45533496 52840330
43706619 50648145
41971406 48565822
40322802 46587295
356755901 413707216

352407516

253939135

196092899

Year

Rs. 1000

Rs. 800

2014

34650000
37946000
41242000
39367400
37586324
35894652
34287440
32760568
293734384

37740000
41365600
44991200
42929140
40970080
39109076
37341184
35661460
320107740

44538000 52695600
48888720 57916464
53239440 63137328
50764968 60167632
48414096 57347080
46180644 54667020
44059256 52121272
42043752 49702420
378128876 447754816

226265616

199892260

141871124

2017
2018
2019
2020
2021

Profit

2015
2016
2017
2018
2019
2020
2021

Profit

Rs. 700

66292784
Rs. 600

72245184

2016

2017

Competitors entering year

2016
2017

2014 entry

2018

2018

2019

2019

2020

2020

2021

2021

Price

Rs. 1000

Rs. 800

Rs. 700

Rs. 600

Year

Forecast

Forecast

Forecast

Forecast

2014

75000

82500

99000

118800

2015

83000

91300

109560

131472

2016

91000

100100

120120

144144

2017

86450

95095

114114

136936

2018

82127

90340

108408

130090

2019

78021

85823

102987

123585

2020

74120

81532

97838

117406

2021

70414

77455

92946

111535

2014
2015
2016
2017
2018
2019
2020
2021

2014
2015
2016
2017
2018
2019
2020
2021

2014
2015
2016
2017
2018
2019
2020

75000000 66000000
83000000 73040000
91000000 80080000
86450000 76076000
82127000 72272000
78021000 68658400
74120000 65225600
70414000 61964000
640132000 563316000

69300000 71280000
76692000 78883200
84084000 86486400
79879800 82161600
75885600 78054000
72090900 74151000
68486600 70443600
65062200 66921000
591481100 608380800

75000000 66000000
83000000 73040000
91000000 80000000
86450000 76076000
82127000 72272000
78021000 68658400
74120000 65225600
70414000 61964000
640132000 563236000

69300000 60000000
70000000 60000000
70000000 60000000
70000000 60000000
70000000 60000000
70000000 60000000
68486600 60000000
65062200 60000000
552848800 480000000

65000000
65000000
65000000
65000000
65000000
65000000
65000000

65000000
65000000
65000000
65000000
65000000
65000000
65000000

65000000
65000000
65000000
65000000
65000000
65000000
65000000

65000000
65000000
65000000
65000000
65000000
65000000
65000000

2021

65000000 65000000
520000000 520000000

65000000 65000000
520000000 520000000