Two manufacturing companies which have the following operating details decide to merge:

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.