In the year 2020, Metro Corporation expects an increase of 25% in cost of sales as compared to cost of sales in 2019 of RM135,000. Sales in 2019 is RM 225,000. Operating expenses for 2019 of RM23,000 will increase by 5% while interest on loans (RM4,000) and depreciation (RM15,000) remains. Tax rate is 25%. a) Prepare an income statement for Metro Corporation for the year ended June 31, 2019. b) How much is the revenues/sales for 2020 if Metro Corporation wants to reach breakeven based on : - EBDAT? - NOPAT? c) Refering to question in section b), state the difference of the two breakeven revenues above in RM. d) If a product offered by Metro Corporation is sold at RM1,125 per unit, how many quantity should be sold to breakeven based on: - EBDAT? - NOPAT?
1. In the year 2020, Metro Corporation expects an increase of 25% in cost of sales as compared to cost of sales in 2019 of RM135,000. Sales in 2019 is RM 225,000. Operating expenses for 2019 of RM23,000 will increase by 5% while interest on loans (RM4,000) and
a) Prepare an income statement for Metro Corporation for the year ended June 31, 2019.
b) How much is the revenues/sales for 2020 if Metro Corporation wants to reach breakeven based on :
- EBDAT?
-
c) Refering to question in section b), state the difference of the two breakeven revenues above in RM.
d) If a product offered by Metro Corporation is sold at RM1,125 per unit, how many quantity should be sold to breakeven based on:
- EBDAT?
- NOPAT?
Step by step
Solved in 4 steps
