Question 3 (20 marks) (a) Miow Miow is a new company which produces dry fruits. Given the following income statement of Miow Miow Ptd Ltd, you are asked to answer the following questions. RM Net Sales 280,000 Cost of Goods (160,000) Sold Gross Profit expenses 120,000 Administrative (55,000) Marketing (55,000) expenses Depreciation (30,000) EBIT (20,000) Interest (15,000) expenses Income taxes 0 Net income/loss (35,000) The administrative expenses are a fixed cost in which Miow Miow pays for staff salary and commissions. The marketing expenses are also a fixed cost as it only involves advertisement and social media promoting charge. The cost of goods sold is varying depending on the sales and the effective tax rate is 20%. (i) (ii) Calculate the survival breakeven amount for Miow Miow to acheive break even next year. Explain your result. (5 marks) If the selling price for 100g of dry fruits is RM10, explain the quantity to be sold (in gram) in order to achieve break-even point. (4 marks) (iii) If Miow Miow needs to raise more debt and the interest cost increased to RM20,000. Explain at which level of revenue that the company can reach break- (5 marks) even. (b) Following is financial statement information for JP Corporation: net sales = RM2,768; cost of goods sold = RM1,210; depreciation = RM360; interest expense = RM160; taxes = RM312; addition to retained earnings = RM508; and dividends paid = RM218.; cash RM242; accounts receivable = RM850; inventory = RM820; net fixed assets = RM3,408; accounts payable = RM700; short-term notes payable = RM740; long-term liabilities = RM1,100; common stock = RM1,160; retained earnings = RM1,620. = (i) (ii) Calculate the net profit margin for JP Corporation Calculate the operating profit margin for JP Corporation (2 marks) (2 marks) (iii) Calculate the sales-to-total-assets ratio for JP Corporation (2 marks)