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The following financial information relates to Bukhosi Chains cc at the end of their financial year 3 1 March 2 0 2 2 : Extract
The following financial information relates to Bukhosi Chains cc at the end of their financial year March : Extract from the general ledger:Trading account F DateDetailsFol.AmountDateDetailsFol.AmountMarch Cost of salesProfit & loss GJGJ March Sales GJ
QUESTIONRisk and Return
Marks
a The income statement of Softy Ltd for the past year is as follows:
Sales units @ R
R
Variable Cost@R
R
Contribution
R
Fixed Cost
R
Earnings before interest and Tax R
Interest Expense
R
Earnings before Tax
R
Tax
R
Earnings after tax
i What is the breakeven point in units and value
ii Calculate the degree of operating leverage
iii. Calculate the degree of financial leverage
iv Calculate the degree of combined leverage
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