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Sutera Business Sdn Bhd has recorded sales of 2 5 0 , 0 0 0 units at RM 1 2 in the financial year 2
Sutera Business Sdn Bhd has recorded sales of units at RM in the financial year The operating costs of Sutera Business Sdn Bhd are as follows:
Operating Variable cost
Fixed Operating cost
RMper unit RM
During the period, Sutera Business Sdn Bhd paid a loan interest of RM The equity of Sutera Business Sdn Bhd is shown below:
units of preferred shares with annual dividend of RMSunit
ordinary shares issued.
Earnings are subject to a tax of percent.
As per the above information, you are required to:
i Calculate the BEP in units and RM for Sutera Business Sdn Bhd Marks
ii Calculate the Earnings per share at the current sales level Marks
iii Calculate the earnings per share if sales increase by Marks
iv Calculate the Degree of Operating Leverage at current sales level. Marks
v Calculate the Degree of Financial Leverage at current sales level. Marks
vi Calculate the Degree of Total Leverage at current sales level. Marks
b Azam Berhad is a home improvement retailer. The company financial structure as follow where the company have a shortterm debt of RM; account payable RM; long term debt RM and owners' equity of RM Calculate the interest bearing debt ratio of Azam Berhad for their present capital structure.
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