Two manufacturing companies, having the following operating details, decide to merge:

Assuming that the merger goes through, calculate:
(i) Break-even sales of the merged plant and the capacity utilisation at that stage.
(ii) Profitability of the merged plant at 80 per cent capacity utilisation.
(iii) Sales turnover of the merged plant to earn a profit of ₹75 lakh.
(iv) When the merged plant is working at a capacity to earn a profit of ₹75 lakh, what percentage increase in selling price is required to sustain an increase of 5 per cent in fixed overheads?

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Capacity utilization (%) Sales (lakh) Variable costs (lakh) Fixed costs (lakh) Company 1 Company 2 90 60 540 300 396 225 80 50