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QUESTION

You are required : 1. Separate the fixed and variable costs of the company 2. Determine the projected Fixed overheads / Operating expenses of the company for 2023 3. Determine the projecte

You are required :

1.     Separate the fixed and variable costs of the company

2.     Determine the projected Fixed overheads / Operating expenses of the company for 2023

3.     Determine the projected Profit margin of the company’s manufacturing operation

4.     Determine the Breakeven point of the company’s manufacturing now ? What is the current level of Safety margin of the company ?

5.     Determine the Degree of Operating Leverage  (DOL) of the company ?

6.     Determine the degree of Financial Leverage (DOL) of the company ?

7.     If the company have been selling its rubber glove at an average price of RM 0.40 per pair, what could be the lowest price that company could accept for a special order of say 500,000,000 gloves if the company could create the capacity conveniently without increasing its operating costs ?

8.     Based on the average variable costs of manufacturing per pair, could the company consider taking over a manufacturing space / capacity that could produce at RM 0.15 per pair. ?

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