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Fishing Port Dickson Bhd manufactures and sell aquariums. The company plans to sell 50,000 aquariums next year. The average selling price per aquarium is RM400.

Fishing Port Dickson Bhd manufactures and sell aquariums. The company plans to sell 50,000 aquariums next year. The average selling price per aquarium is RM400. Variable cost is RM280 per unit. Fixed costs for the firm average RM270,000 annually.

  1. Calculate the break-even point in units.
  2. Calculate the break-even point in ringgit.
  3. Calculate the degree of operating leverage (DOL) for a production and sales level of 4,000 aquariums.
  4. Determine the effects on EBIT if the sales level increase by 25% from the sales level stated in (3) above.

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