The following information of a manufacturing company operating international trade is given:

$$ Sales Price: $7$ TL $/$unit

$$ Variable cost: $4$ TL$/$unit

$$ Sales Volume: $900,000$ units

$$ Total Fixed Costs: $400,000$ TL

$$ Finance Expenses: $100,000$ TL

a$)$ Construct analytical income statement for this firm. $(10$ pts$)$

ANALYTICAL INCOME STATEMENT

NET SALES REVENUE

Total Variable Costs

Contribution Margin

Total Fixed Costs

Operating Income

Finance Expenses

NET PERIOD INCOME

b$)$ Calculate degree of operating leverage $($DOL$)$ and comment. $(4$ pts$)$

c$)$ Calculate degree of financial leverage $($DFL$)$ and comment. $(4$ pts$)$

d$)$ Calculate degree of combined leverage $($DCL$)$ and comment. $(4$ pts$)$

e$)$ Comment about company$$s business risk and financial risk if the sector averages of DOL and DFL

are $1\mathrm{.}8$ and $0\mathrm{.}9,$ respectively. Which method$($s$)$ of payment would you prefer for this company $($if

the company is your customer$/$importer$/$buyer$)$ explain why