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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 31 March 2022: Extract from the general ledger:Trading account F1 DateDetailsFol.AmountDateDetailsFol.Amount2022March 31 Cost of salesProfit & loss GJ12GJ12434687.52470911.482022 March 31 Sales GJ12905599.00905599.00
QUESTION1_(Risk and Return).
Marks)
a. The income statement of Softy Ltd for the past year is as follows:
Sales (15000 units @ R40)
R600000
Variable Cost(15000@R17)
R255000
Contribution
R345000
Fixed Cost
R145000
Earnings before interest and Tax R200000
Interest Expense
R70000
Earnings before Tax
R130000
Tax
R52000
Earnings after tax
R78000
i. What is the break-even point in units and value [5]
ii. Calculate the degree of operating leverage [5]
iii. Calculate the degree of financial leverage [5]
iv. Calculate the degree of combined leverage [5]
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