Suppose cost control methods bring down the fixed costs to Rs 18,000 from Rs 20,000. If the sale price and the variable cost remain constant at Rs 3 and Rs 2 respectively, BEP will shift backward to...

Suppose cost control methods bring down the fixed costs to Rs 18,000 from Rs 20,000. If the sale price and the variable cost remain constant at Rs 3 and Rs 2 respectively, BEP will shift backward to Rs 54,000 from a previous level of Rs 60,000, and if the firm produces the same level of output, that is, 20,000 units, profits for Rs 2,000 will emerge.