a$.$ Calculate the break$-$even point in units.

$(2$ Marks$)$

b$.$ Calculate the break$-$even point in RM$.$

$(2$ Marks$)$

c$.$ Assume that the management is considering revising the sales price downward to

RM$13\mathrm{.}25$ to increase the sales volume by $20\%.$ Is the revised price a better alternative?

$(4$ Marks$)$

d$.$ Calculate the degree of operating leverage at this level of output.

$(2$ Marks$)$

e$.$ Calculate the degree of financial leverage.

$(2$ Marks$)$

f$.$ Determine the degree of combined leverage.

$(2$ Marks$)$

g$.$ If sales increase by $12\%,$ what will be the new level of the company's EPS if it has

$200,000$ shares outstanding?

$(3$ Marks$)$

h$.$ Define and briefly discuss the dangers to a firm of having high level of:

i$.$ Operating leverage

ii$.$ Financial leverage

$(8$ Marks$)$