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The following cost-volume-profit (CVP) income statements are available for A4B Company and Gemersik Company: Required: i. Determine the break-even sales (RM) for each company. (3
The following cost-volume-profit (CVP) income statements are available for A4B Company and Gemersik Company: Required: i. Determine the break-even sales (RM) for each company. (3 marks) ii. Determine the margin of safety ratio for each company. (3 marks) iii. Determine the degree of operating leverage for each company and interpret our result. 3 marks) iv. Determine net income of each company if sales revenue increases by 20%. (4 marks) v. Determine net income of each company if sales revenue decreases by 20%
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