The financial controller for ChickenPie Berhad has constructed the following partial pro forma income statement for the next 2018 fiscal year.

Sales RM22400

Variable Costs RM 11200

Contribution Margin RM 11200

Fixed Operating Costs RM 4800

EBIT RM 6400

Interest Expense RM 3200

EBT RM 3200

Taxes (30%) RM 960

Net Income RM 2240

Required:

a) if the average unit cost is RM8, what is the break-even point in unit?

b) What is the break-even in sales dollar for the firm?

c) Calculate the degree of operating leverage, degree of financial leverage and degree of total leverage of this level of output

d) If ChickenPie Berhad's sales next year increase by 20%, estimate the percentage increase in EBIT.

e) Current EPS is RM2 24. Calculate the new EPS for ChickenPe Berhad next year when sales increase by 20%