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The following is extracted summary of Income statement of Sambusha Bhd. Revenue Less Variable Costs Contribution Margin Less Fixed Costs ( Overheads ) Finance costs
The following is extracted summary of Income statement of Sambusha Bhd. Revenue Less Variable Costs Contribution Margin Less Fixed Costs ( Overheads ) Finance costs Operating Profit Less Taxation @24% Profit after tax RM2,345,550.00 RM1,645,230.00 RM700,320.00 RM360,300.00 RM65,200.00 RM274,820.00 RM65,956.68 RM208,863.32 a. The board of directors wants to know what is the level of break-even point for the company's operation. b. The board also wants to know how safe the operation level is. c. The board wants to know what is the degree of operating leverage (DOL) of the company and what it means to the company. d. What is the Degree of Financial Leverage (DFL). (5 Marks) e. What are the implication of the Safety margin, DOL, DFL and Degree of Combined Leverage (DCL) to the company prospect
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