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The following information of a manufacturing company operating international trade is given: Sales Price: 7 TL / unit Variable cost: 4 TL / unit Sales
The following information of a manufacturing company operating international trade is given:
Sales Price: TL unit
Variable cost: TLunit
Sales Volume: units
Total Fixed Costs: TL
Finance Expenses: TL
a Construct analytical income statement for this firm. 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. pts
c Calculate degree of financial leverage DFL and comment. pts
d Calculate degree of combined leverage DCL and comment. pts
e Comment about companys business risk and financial risk if the sector averages of DOL and DFL
are and respectively. Which methods of payment would you prefer for this company if
the company is your customerimporterbuyer explain why
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