Particulars Company No. 1 Company No. 2 Capacity utilization % Sales (Rs. Lakh

Particulars Company No. 1 Company No. 2
Capacity utilization %
Sales (Rs. Lakhs)
Variable Cost (Rs. Laksh)
Fixed Cost (Rs. Laksh) 90
540
396
80 60
300
225
50
Assuming that the proposal is implemented calculate : (i) Break-even sales of the merged plant and the capacity utilization at that stage. (ii) Profitability of the merged plant at 80% capacity utilization. (iii) Sales turn over of the merged plant to earn a profit of Rs. 75 lakhs. (iv) When the merged plant is working at a capacity to earn a profit of Rs. 75 lakhs what percentage increase in selling price is required to sustain an increase of 5% in fixed overheads