Ara Lukut had developed the following analytical profit and loss statement Ara Lukut Property Berhad. It represents
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Question:
Ara Lukut had developed the following analytical profit and loss statement Ara Lukut Property Berhad. It represents the operations for the year ended in 2019.
| RM |
Sales | 32,000,000 |
Variable Costs | 19,200,000 |
Contribution | 12,800,000 |
Fixed Costs | 8,000,000 |
EBIT | 4,800,000 |
Interest expense | 1,600,000 |
Earnings before taxes | 3,200,000 |
Taxes @ 25% | 800,000 |
Net income | 2,400,000 |
- Calculate the break-even point in ringgit.
- Calculate the degree of operating leverage (DOL).
- Calculate the degree of financial leverage (DFL).
- Calculate the degree of combined leverage (DCL).
- If the sales should increase by 20%, by what percentage would you expect operating income to increase?
- Calculate the percentage change in earning per share if EBIT increase by 25%.
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