Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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.
- Calculate the break-even point in units.
- Calculate the break-even point in ringgit.
- Calculate the degree of operating leverage (DOL) for a production and sales level of 4,000 aquariums.
- Determine the effects on EBIT if the sales level increase by 25% from the sales level stated in (3) above.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started