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New Corp Ltd. incurs fixed costs of Rs. 5,00,000 per annum. The company produces a single product with annual sales budgeted to be 70,000 units

New Corp Ltd. incurs fixed costs of Rs. 5,00,000 per annum. The company produces a single product with annual sales budgeted to be 70,000 units at a sales price of Rs.300 per unit. Variable costs are Rs.280 per unit.

You are required to determine the breakeven point and explain the significance of breakeven point.

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