a$.$ a$)$ Sutera Business Sdn Bhd has recorded sales of $250,000$ units at RM$12$ in the

financial year $2022.$ The operating costs of Sutera Business Sdn Bhd are as follows:

Operating Variable cost

RM$4\mathrm{.}00/$per unit

Fixed Operating cost

RM$750,000$

During the period, Sutera Business Sdn Bhd paid a loan interest of RM$125000.$ The

equity of Sutera Business Sdn Bhd is shown below:

$5000$ units of preferred shares with annual dividend of RM$5/$unit$.$

$15000$ ordinary shares issued.

Earnings are subject to a tax of $28$ percent.

As per the above information, you are required to:

i$)$ Calculate the BEP in units and RM for Sutera Business Sdn Bhd$.$

$(5$ Marks$)$

ii$)$ Calculate the Earnings per share at the current sales level

$(3$ Marks$)$

iii$)$ Calculate the earnings per share if sales increase by $10\%$

$(3$ Marks$)$

iv$)$ Calculate the Degree of Operating Leverage at current sales level.

$(3$ Marks$)$

v$)$ Calculate the Degree of Financial Leverage at current sales level.

$(3$ Marks$)$

vi$)$ Calculate the Degree of Total Leverage at current sales level.

$(3$ Marks$)$

b$.$ Azam Berhad is a home improvement retailer. The company financial structure as follow

where the company have a short$-$term debt of RM$400000$; account payable RM$100000$;

long term debt RM$2000000$ and owners' equity of RM$1500000.$ Calculate the interest$-$

bearing debt ratio of Azam Berhad for their present capital structure.

$(5$ Marks$)$

$($Total: $25$ Marks$)$