Exercise MC$\_1-$ EBIT function in the CVP Model: comparison of two companies

The following table contains essential economic data from two different companies. The data represented

in it refer to September $30,20$X$0$ for variable components, while the figure for fixed costs and revenues is

expressed in annual terms.

Required:

Using the information provided in the table appropriately, the candidate:

Determine the EBIT value of the two companies as of September $30,20$X$0.$

Calculate the break$-$even point $($in quantity$)$ of the two companies.

Provide the expected level of operating income at year$-$end for both companies.

Give the quantity level at which the two companies produce the same result.

B$.$ Determine, for each company, the percentage increase that the price would have to occur to bring

the company to a break$-$even situation relative to a sales level of $1,800$ units.

Establish the maximum level of percentage increase that residual fixed costs can undergo if the

company is still to remain at least operationally break$-$even at the projected year$-$end sales level

For each of the two companies determine the level of sales for which the degree of operating

leverage equals $4($if there are decimal numbers, round up the value to the next integer$)$

Establish the cost of unused production capacity for the two companies expected at the end of the

period.