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IMPORTANT PLEASE ..................... (c) United Plantation Berhad is a firm that produces crude palm oil. The average selling price of the crude palm oil is

IMPORTANT PLEASE .....................

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(c) United Plantation Berhad is a firm that produces crude palm oil. The average selling price of the crude palm oil is RM2,500 per ton. The following shows selected financial information for United Plantation Berhad: Sales (in tons) Variable Costs Fixed Costs Interest paid Preferred stock dividend Tax rate 15,000 60% of sales RM10,000,000 RM3,000,000 RM1,000,000 30% Based on the information provided, (i) Determine the breakeven operating point in tons). (3 marks) (ii) Compute the degree of operating leverage (DOL), degree of financial leverage (DFL), and degree of combined leverage (DCL). (7 marks) [Total: 30 marks]

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