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such Ons Ex. 4. There are two similar plants under the same management. The management desires to merge these two plants. The following particulars

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such Ons Ex. 4. There are two similar plants under the same management. The management desires to merge these two plants. The following particulars are available. Capacity operation Sales Variable costs Fixed costs Factory I 100% (Flacs) 600 440 80 Factory II 60% (Place) 240 180 40 You are required to calculate: (a) the capacity of the merged plant to be operated for the purpose of break-even, and (b) the profitability on working at 75% of the merged capacity.

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