Question 3 (a) Peppermint Sdn Bhd has fixed costs of RM46,000 and variable costs that are 30 percent of the current sales price of RM2.15. At a price of RM2.15, Peppermint sells 40,000 units. Peppermint can increase sales by 10,000 units by cutting its unit price from RM2.15 to RM1.95, but variable cost per unit won't change. Should it cut its price? i. Find the value EBITI at 40,000 units using the current sales price RM2.15. (4 marks) ii. Find the value EBIT2 using the lower price of RM1.95. (4 marks) iii. Find the change in EBIT and indicate whether Peppermint should cut its price. (4 marks) (b) Clove Berhad has sales of 30,000 units, fixed operating costs of RM72,000, variable operating costs of RM6.75 per unit and selling price of RM9.75 per unit. Find: i. the operating breakeven point in units ii. the degree operating leverage (4 marks) (4 marks) (c) Rosemary Berhad's stock was trading at RM150 per share before its recent 3-for-1 stock split. The 3-for-1 split led to a 5 percent increase in Rosemary's market capitalization. (Market capitalization equals the stock price times the number of shares.) What was Rosemary's price after the stock split? (5 marks) (TOTAL: 25 MARKS)