The information of Chocolate Berhad is described as follows: RM600,000 200,000 400,000 150,000 250,000 50,000 200,000...

Transcribed Image Text:

The information of Chocolate Berhad is described as follows: RM600,000 200,000 400,000 150,000 250,000 50,000 200,000 60,000 RM140,000 Sales Variable costs Total contribution margin Fixed costs EBIT Interest expense Earnings before taxes Taxes (30%) Net income Required: a) What is Chocolate Berhad's BEP(RM)? b) Determine Chocolate Berhad's operating leverage at this level of output. c) Calculate the degree of financial leverage at this level of output for Chocolate Berhad d) What is the combined leverage for Chocolate Berhad? e) If sales increase by 10%, what will be Chocolate Berhad's EPS if the firm has 50,000 shares outstanding? The information of Chocolate Berhad is described as follows: RM600,000 200,000 400,000 150,000 250,000 50,000 200,000 60,000 RM140,000 Sales Variable costs Total contribution margin Fixed costs EBIT Interest expense Earnings before taxes Taxes (30%) Net income Required: a) What is Chocolate Berhad's BEP(RM)? b) Determine Chocolate Berhad's operating leverage at this level of output. c) Calculate the degree of financial leverage at this level of output for Chocolate Berhad d) What is the combined leverage for Chocolate Berhad? e) If sales increase by 10%, what will be Chocolate Berhad's EPS if the firm has 50,000 shares outstanding?

Answer rating: 100% (QA)

Question 1 Break even Point Fixed Cost Contribution pu 60000 20000Contributio... View the full answer