QUESTION- PLEASE ANSWER ALL THE QUESTION BASED ON THE SENARIO GIVEN, ANSWERS ARE REQUIED PROPER ELABORATION AND MATHEMATICAL STEP IF NECESSARY.

Footwears Sdn. Bhd. manufactures a complete line of men's and women's dress shoes for independent merchants. The average selling price of its finished product is RM245 per unit.

The variable cost for these same units is RM125 per unit. Foorwear's incurs fixed costs of RM425,000 per year.

In terms of financing the business, Footwears Sdn. Bhd. had obtained debt as one of the source of finance. The interest expense incurred for the firm is RM3750. Besides that the firm also used preferred stock as another source of finance in managing the business. Total preferred stock dividend incurred for the firm is RM 725. The firm is in the 35% tax bracket.

The company has been operating up to this point without much quantitative knowledge of the business and financial risks it faces. Thus, your supervisor's in the controller's office has just handed you a memorandum asking for written responses to the following items:

(a). Determine the break-even point in units for Footwears Sdn. Bhd.

(b). Determine the sales volume in (RM) for the firm to reach the break-even point.

(c). draw a table showing all the necessary items for an income statement of the following

units of production sold: 5,500 units and 7,000 units.

(d). Calculate the degree of operating leverage (DOL) and degree of financial (DFL) leverage for the production and sales levels given in part c above.