IAC$2601/103/0/2024$

Interest on debt

Selling price

R$1500000$ per year

R$400$

Given a budgeted production and sales of $50000$ units per year, determine the

following:

$2\mathrm{.}5\mathrm{.}1$ Units needed to be sold in order to break even.

$2\mathrm{.}5\mathrm{.}2$ Degree of operating leverage.

$2\mathrm{.}5\mathrm{.}3$ Degree of financial leverage.

$2\mathrm{.}5\mathrm{.}4$ Degree of combined leverage.

$[25]$