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Get access to the detailed solutions to the previous years questions asked in IIFT exam
Let's calculate No of Units as Revenue / Unit price.
Per Unit cost as (Revenue - Profit ) / No of Units.
Costs Incurred = Revenue - Profit
If there is a percent 20 % increase in the cost price for year 2005-10 and the 20% decrease in price during 2000-2004.
In that way, we calculate the table as follows.
The company will incur a loss if unit price is lesser than unit cost price.
Thus for 2000, 2001, 2003, 2004 and 2008 there will be net loss. For 5 years there was a loss.
Hence C is the correct answer.