1. The following numbers are arrived from annual operations of ABC Ltd. , a Microfinance Institution, during FY 2020-21:

Interest Yield on Portfolio of MFIs - 29%

Funding Expenses - 13%

Cost of Loan Losses - 3%

Variable Operating Expenses - 2%

Fixed Operating Expenses - Rs.11 Lacs per annum

Assume that in FY 2021-22, based on the RBIs recommendations, ABC Ltd. , reduces its interest yield on portfolios by 200 basis points( 100 basis points = 1%).

Use Cost-Volume-Profit analysis to compute the percentage change in the Break even level of operation.