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Nairobi Manufacturing limited is operating two simi~dr factories. The management desires to merge the two factories. The following are information about the two plants.

Nairobi Manufacturing limited is operating two simi~dr factories. The management desires to merge the two factories. The following are information about the two plants. " Capacity Factory I 100% Factory II 60% Sales (Kshs.) 1,800,000 Variable costs (Kshs.) 1,320,000 720,000 540,000 120,000 Fixed cost 240,000 You are required to calculate: 1. Break-even point of merged capacity. Profitability on working at 80% of merged capacity. Total sales on working at 100% of merged capacity Margin of safety ratio on working at 100% of merged capacity

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