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Question 3 Dida Berhad had developed the following Income Statement for its operations ended 31...

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Question 3 Dida Berhad had developed the following Income Statement for its operations ended 31 December 2020 RM Sales 780,000 (-) Variable Cost 335,000 Contribution Margin 445,000 (-) Fixed Costs 70,000 Earnings Before Interest and Taxes 375,000 Interest Expense 16,000 Earnings Before Tax 359,000 Taxes @ 28% 100,520 Net Income 258,480 Required: a) Calculate the degree of operating leverage. (2 Marks) b) Calculate the degree of financial leverage. (2 Marks) c) Calculate the degree of combined leverage. (2 Marks) d) If sales should increase by 21%, by what percent would EBIT increase? (2 Marks) e) Given the number of shares is 50,000 shares, calculate the new EPS if EBIT should increase by 35%. (4 Marks) (Total: 12 Marks)

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