Question $3$

The information of Chocolate Berhad is described as follows:

$\backslash$table$[[$Sales$,$RM$600,000],[$Variable costs,$200,000],[$Total contribution margin,$400,000],[$Fixed costs,$150,000],[$EBIT$,250,000],[$Interest expense,$50,000],[$Earnings before taxes,$200,000],[$Taxes $(30\%),60,000],[$Net income,RM$140,000]]$

Required:

a$)$ What is Chocolate Berhad's BEP$(RM)?$

b$)$ Determine Chocolate Berhad's operating leverage at this level of output.

c$)$ Calculate the degree of financial leverage at this level of output for Chocolate Berhad

d$)$ What is the combined leverage for Chocolate Berhad?

e$)$ If sales increase by $10\%,$ what will be Chocolate Berhad's EPS if the firm has $50,000$ shares outstanding?