Find below data given for a business showing losses/costs incurred at different levels of operations and if the firm decides to shut down operations. Units produced Shutdown Particulars 1,000 2,000 3,000 4,000 5,000 costs units units units units units Sales Revenue @ Rs 3 3,000 6,000 9,000 12,000 15,000 Variable Cost @Rs 2 2,000 4,000 6,000 8,000 10,000 Contribution 1,000 2,000 3,000 4,000 5,000 Fixed Costs 2,000 5,000 5,000 5,000 5,000 5,000 Profit/(Loss) (2,000) (4,000) (3,000) (2,000) (1,000) The production manager and finance manager are deliberating on deciding about at what output level would it be appropriate to shut-down the factory rather than continue operations? You need to help them take this decision by justifying your reasons for the same. (Mention the numerical results for your explanation). Do you think a shut down decision is purely a financial one? What other qualitative factors need to be considered while deciding on whether to continue or shut-down operations.