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300 QUESTION 2 (15) The following information is available for Astrid Ltd and Duncast Lad. Astrid Duncast Units produced and sold 30 000 30000 Rm

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300 QUESTION 2 (15) The following information is available for Astrid Ltd and Duncast Lad. Astrid Duncast Units produced and sold 30 000 30000 Rm Rm Revenues 1125 1125 85.0 85.0 Variable costs 55.0 Fixed costs 200 55.0 Net Operating income 27.5 27.5 Required: a) Find the breakeven point for each company in units. [51 b) Calculate the degree of operating leverage for each company at 30000 units. 151 c) Given the choice to invest in one of the two companies, which one would you invest in? Discuss by giving appropriate examples and scenarios based on the calculations above. 15)

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