Question-22 Omega Supplies is a manufacturer and distributor of healthcare products. It has provided the...
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Question-22 Omega Supplies is a manufacturer and distributor of healthcare products. It has provided the following Income Statement for the year ended March 31, 2022: Sales (60,000 units) Variable costs Contribution margin Fixed manufacturing costs Operating income Interest Earnings before taxes Taxes (at 30%) Net income Shares outstanding $3,600,000 2.160,000 1,440,000 850.000 590,000 160.000 430,000 129.000 S301.000 400,000 Required: Calculate the following (to get proper credit, show detailed calculation including formula used) [14 marks] A) Calculate Break-Even in units (Assume interest as a fixed expense) [5 Marks) B) Calculate the Degree of Operating Leverage and degree of Financial Leverage [4 Marks) E) How many units the company needs to sell to earn an EBT of $600,000 [5 Marks)
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