BEPS of the merged plant and capacity utilization for achieving BEPS.

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.