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6. A company has two plants at locations I and II, operating at 100% and 75% of their capacities respectively. The company is considering a
6. A company has two plants at locations I and II, operating at 100% and 75% of their capacities respectively. The company is considering a proposal to merge the two plants at one location to optimize available capacity. The following details are available in respect of the two plants, regarding their present performance/operations: For decisi (a) The ci,.., at wnich the merged plant will break out the following information: (b) The profit of the merged plant workint will break even. (c) Sales required if the merged plant is tering at 80% capacity. 7. A company had incurred fixed plant is required to earn an overall profit of Rs 22 lakh. profit of Rs Rs75,000
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