1) the board of directors wants to know what is the level of break even point for the companys operation 2)the board also wants to know how safe the operation level is 3)the boards wants to know what is the degree of operating leverage(DOL) of the company and what it means to the company 4)what is the degree of financial leverage(DFL) 5)what are the implication of the safety margin,DOL,DFL,and degree of combined leverage (DCL) to the company prospect

QUESTION 3 (20 Marks) The following is extracted summary of Income statement of Sambusha Bhd. Revenue RM2,345,550.00 Less Variable Costs RM1,645,230.00 Contribution Margin RM700,320.00 Less Fixed Costs ( Overheads ) RM360,300.00 Finance costs RM65,200.00 Operating Profit RM274,820.00 Less Taxation @24% RM65,956.68 Profit after tax RM208,863.32