Business
Business, 26.11.2019 00:31, kaylee0424

Question a

the following data is available for firm a

firm a

quantity 20,000 units

selling price kshs 20

variable cost kshs 15

fixed cost kshs 40,000

interest kshs 10,000

preferred dividend kshs 5,000

tax rate 30%

required: (8marks)

i. overall break – even point in units.

ii. degree of operating leverage.

iii. degree of financial leverage.

iv. degree of total leverage.

answer
Answers: 3

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Question a

the following data is available for firm a

firm a

quanti...

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