UGM June 2019 Q90

0. AB Ltd. manufactures filing cabinets. For the current year, the company expects to sell 4,000 cabinets involving a loss of Rs.2,00,000. Only 40 per cent of the plant’s normal capacity is being utilised during the current year. The fixed costs for the year are Rs.10,00,000 and fully variable costs are 60 per cent of the sales value. What is the breakeven point in terms of sales value?

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