If a decrease in the prices of raw material or its efficient use reduces the variable cost from Rs 2 to Rs 1.40, the BEP with a fixed cost of Rs 20,000 will shift from Rs 60,000 to Rs 37,500. If the...

If a decrease in the prices of raw material or its efficient use reduces the variable cost from Rs 2 to Rs 1.40, the BEP with a fixed cost of Rs 20,000 will shift from Rs 60,000 to Rs 37,500. If the firm produces the same 20,000 units, profits will accrue to the extent of Rs 12,500.