Calculate megastructure degree of combined leverage

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The Megastructure Airplane Company has the following modified income statement (RM 000) at 150,000 units of production.

Revenues 10,000
Variable costs 6,500
Fixed costs 2,200
EBIT 1,300
Interest at 10% 500
EBT 800
Tax 35% 320
EAT 480
Number of shares 20,000

i) What is Megastructure's contribution margin?
ii) What is Megastructure's dollar break-even point?
iii) Calculate Megastructure's degree of financial leverage (DFL).
iv) Calculate Megastructure's degree of operating leverage (DOL).
v) Calculate Megastructure's degree of combined leverage (DCL).


Reference no: EM13292365

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