K1 and K2 are two similar plants under the same management who want them to be merged for better operation. The details of K1 and K2 are as follows:
K1
K2
Capacity Utilization
90%
60%
Sales
Rs. 6,30,000
Rs. 3,60,000
Variable Cost
Rs. 3,60,000
Rs. 2,40,000
Fixed Cost
Rs. 1,20,000
Rs. 80,000
Find out: BEPS of the merged plant and capacity utilization for achieving BEPS. Profitability of the merged plant at 80% capacity. Sales of the merged plant to earn a profit of Rs. 1,00,000.