Cookwell Ltd. manufactures pressure cookers with the selling price being `300 per unit. Currently the capacity utilisation is 60 per cent with a sales turnover of `18 lakh. The company proposes to...

Cookwell Ltd. manufactures pressure cookers with the selling price being `300 per unit. Currently the capacity utilisation is 60 per cent with a sales turnover of `18 lakh. The company proposes to reduce the selling price by 20 per cent but desires to maintain the same profit position by increasing the output. Assuming that all the increased output could be made and sold, determine the level at which the company should operate to achieve the desired objective. The following data is further available:

(i) Variable costs per unit, `60.

(ii) Semi-variable costs (including a variable element of `10 per unit), `1,80,000.

(iii) Fixed costs, `3,00,000 will remain constant up to 80 per cent level. Beyond this an additional amount of `60,000 will be incurred.