In the year 2019, Bolo Corporation expects an increase of 25% in cost of sales as compared to cost of sales in 2018 of RM135,000. Sales in 2019 is RM 225,000. Operating expenses for 2018 of RM23,000 will increase by 5% while interest on loans (RM4,000) and depreciation (RM15,000) remains. Tax rate is 25%.

a) Prepare an income statement for Bolo Corporation for the year ended June 31, 2018.

b) How much is the revenues/sales for 2019 if Bolo Corporation wants to reach breakeven based on :

EBDAT?

NOPAT?

c) Refering to question in section b), state the difference of the two breakeven revenues above in RM.

d) If a product offered by Bolo Corporation is sold at RM1,125 per unit, how many quantity should be sold to breakeven based on: EBDAT? NOPAT?