A new subsidiary in the group has a monthly operating expenses of about $55,000 and a financial costs of RM15,000. there are producing natural mineral water and making an average profit margin of 30% on sales. Their current sale level is RM580,000 per month.

a) What is the break even point of the company's factory and how do you interpret it (5 marks)

b) What is the margin of safety of the company and what does it tell (5 marks)

c) What is the degree of operating leverage of the company and what does it mean (5 marks)

d) What is thedegree of financial leverage of the company and what does it mean (5 marks)

c