m 2.11. Financial DFL, DTL Manang Sports Manufacturing Limited manufactures sports materials. The following income statement...

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m 2.11. Financial DFL, DTL Manang Sports Manufacturing Limited manufactures sports materials. The following income statement information is relevant for the firm in 2014. Selling price per unit (S) Variable cost of goods sold (% of selling price) Fixed operating costs Interest expenses Preferred dividends Marginal tax rate Number of common shares Rs 5 75% Rs 50,000 Rs 10,000 Rs 0 40% 20,000 a. What level of sales the firm needs to achieve in 2014 to break-even with respect to operating income? b. At its operating break-even, what will be the EPS for the firm? c. How many units does the firm need to sell in 2014 to attain the financial break- even point? d. If the firm expects its sales to be Rs 300,000 in 2014, what is its degree of operating leverage, its degree of financial leverage, and its degree of total leverage? Based on the degree of total leverage, compute the earnings per you would expect in 2014 if sales actually turn out to be Rs 270,000. share for your corporation. It represents the m 2.11. Financial DFL, DTL Manang Sports Manufacturing Limited manufactures sports materials. The following income statement information is relevant for the firm in 2014. Selling price per unit (S) Variable cost of goods sold (% of selling price) Fixed operating costs Interest expenses Preferred dividends Marginal tax rate Number of common shares Rs 5 75% Rs 50,000 Rs 10,000 Rs 0 40% 20,000 a. What level of sales the firm needs to achieve in 2014 to break-even with respect to operating income? b. At its operating break-even, what will be the EPS for the firm? c. How many units does the firm need to sell in 2014 to attain the financial break- even point? d. If the firm expects its sales to be Rs 300,000 in 2014, what is its degree of operating leverage, its degree of financial leverage, and its degree of total leverage? Based on the degree of total leverage, compute the earnings per you would expect in 2014 if sales actually turn out to be Rs 270,000. share for your corporation. It represents the