EFFICIENCY Ltd. manufactures 20,000 units of 'X' in a year at its normal production capacity. The unit cost as to variable costs and fixed costs at this level are ` 26 and ` 8 respectively. Selling Price per unit is ` 40. Due to trade depression, it is expected that only 2,000 units of 'X' can be sold during the next year. The management plans to shutdown the plant. The fixed costs for the next year then is expected to be reduced by 60%. If the plant is shut down, plant maintenance would cost ` 18,000 and on reopening of the factory, cost of overhauling the plant and cost of training and engagement of new personnel would amount to ` 6,000 and ` 2,000 respectively. Should the plant be shutdown? What is the shut-down point?