Help me answer the letter d and c with solution thank you

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter16: Financial Planning And Control
Section: Chapter Questions
Problem 20PROB
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Help me answer the letter d and c with solution thank you
Problem 11 (Break-even Point and Degree of Leverage)
Silver Yummy Burgers, Inc., sells food to University Cafeterias for P15 a piece.
The fixed costs of this operation are P80,000, while the variable cost per piece is
PI0.
a. What is the break-even point in pieces?
b. Calculate the profit or loss on 15,000 pieces and on 30,000 pieces.
What is the degree of operating leverage at 20,000 pieces and at 30,000 pieces?
Why does the degree of operating leverage change as the quantity sold
increases?
d. If'the firm has an annual interest expense of P10,000, calculate the degree of
financial leverage at both 20,000 and 30,000 pieces.
e. What is the degree of combined leverage at both sales levels?
Transcribed Image Text:Problem 11 (Break-even Point and Degree of Leverage) Silver Yummy Burgers, Inc., sells food to University Cafeterias for P15 a piece. The fixed costs of this operation are P80,000, while the variable cost per piece is PI0. a. What is the break-even point in pieces? b. Calculate the profit or loss on 15,000 pieces and on 30,000 pieces. What is the degree of operating leverage at 20,000 pieces and at 30,000 pieces? Why does the degree of operating leverage change as the quantity sold increases? d. If'the firm has an annual interest expense of P10,000, calculate the degree of financial leverage at both 20,000 and 30,000 pieces. e. What is the degree of combined leverage at both sales levels?
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