QUESTION 2 [64 MARKS] MINA Entertainment (Pty) Ltd (MINA) is an entertainment company that has been operating for 5 years. MINA Entertainment plans to build and open two new theatres to be used for theatrical productions (400 seats in each) during the 2023 financial year. MINA Entertainment plans to build and own its theatrical theatres in the future and diversify into the movie theatre. The Finance Manager has been on sick leave for the past month, and the CEO has requested that you assist with some calculations as you have up-to-date knowledge of Financial Management. MINA has a 30 June year-end. Notes: 1. MINA sells majority of its ticket sales through an independent ticketing agent (Compu-Tik) which has a national call centre and internet-based infrastructure. 2. Commission of 4% is paid to Compu-see. Both financial years have agent commission that amounts to 4% of the said face value of the tickets. The actual attendance statistics and ticket sales are summarized below: 3. Buildings are depreciated over 20 years on a straight-line basis. 4. Utility, marketing, travelling and accommodation and other overhead costs are fixed in nature. 5. Rental escalations are 8% based on the terms of lease agreements. 6. Finance cost is fixed in nature Additional information: 1. 7 per cent R2000000 preference shares 2. A current tax rate of 27 per cent is applicable. Required 1. Calculate MINA's breakeven point for the 2023 financial year (Available 20; Maximum 19 Marks) 2. Calculate MINA's EBIT AND profit for the year (2023 year-end) using the information provided. (17 Marks) 3. Calculate MINA's degree of operating leverage. (4 Marks) 4. Calculate MINA's degree of financial leverage (7 Marks) 5. Calculate MINA'S degree of total leverage (4 Marks) 6. Calculate the effect that an additional sale would have of 30000 tickets on the company's EBIT and net profit. (13 Marks) Learning outcome: Calculate the operating, financial, and total leverage and the relationships among them