There are two similar plants under the same management. The management desires to merge these two plants. The following particulars are available: You are required to calculate: (a) What the break-...

There are two similar plants under the same management. The management desires to merge these two plants. The following particulars are available:

You are required to calculate: (a) What the break- even capacity of the merged plant would be, and (b) What the profitability on working at 75 per cent of the merged capacity would be?