5.2 Arc Security Systems Ltd has set its base level of sales at 7 200 units. Its selling price is R144.55 per unit, the variable cost is R15.55 per unit and the total fixed costs are R28 000.00

Required:

5.2.1. Calculate Arcs operating break-even point (in units) and its degree of operating leverage (DOL). Show all your calculations and round off the final answer to TWO decimals. (12)

5.2.2. Explain what the DOL calculated in 5.2.1 means. (5)

5.2. Arc Security Systems Ltd has set its base level of sales at 7 200 units. Its selling price is R144.55 per unit, the variable cost is R15.55 per unit and the total fixed costs are R28 000.00 Required: 5.2.1. Calculate Arc's operating break-even point (in units) and its degree of operating leverage (DOL). Show all your calculations and round off the final answer to TWO decimals. (12) 5.2.2. Explain what the DOL calculated in 5.2.1 means. (5) SPECIAL EXAMINATION TOTAL: (135) Done Q Assinnment