2. You are provided the following information relating to Trim Energy with forecast of two possible sales performance: Pessimistic Performance RM 4,800.000 3,200,000 Reference Performance RM 6,000,000 4,000,000 Optimistic Performance RM 7.200.000 4,800,000 Sales Less: Variable costs Contribution Less: Fixed costs EBIT 1,600,000 1,000,000 2.000.000 1,000,000 T 2,400,000 1,000,000 600.000 1.000.000 1.400.000 Under the pessimistic performance outlook, sales are forecast to decrease by 20% whereas under the optimistic performance outlook, sales are forecast to increase by 20% against current performance (which has been taken as the reference performance for calculation). Also, the reference level of performance is based on sales of 1,000,000 units of products, sales price of RM6 per unit and variable cost of RM4 per unit. a) Calculate Trim Energy's degree of operating leverage using the above mentioned three formulas. (10 Marks) b) State FIVE (5) Implication of Operating Leverage (10 Marks)