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Below is the information recorded for ABC Sdn Bhd for year 2020. Sales = RM 6 million, Variable costs: RM 4 million, Fixed costs: RM
Below is the information recorded for ABC Sdn Bhd for year 2020. Sales = RM 6 million, Variable costs: RM 4 million, Fixed costs: RM 1 million, Interest: RM300,000, Tax : 30%. Using RM6 million as base, calculate TDL for expected sales of RM4.8 million and RM 7.2 million. Using the information given, show the calculation of degree of total leverage (DTL) using all formula stated below. % change in EPS a) First formula = % change in sales b) Second formula = (DOL) x (DFLEBIT) EBIT +FC c) Third formula EBIT-I
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