You are required : 1. Separate the fixed and variable costs of the company 2. Determine the projected Fixed overheads / Operating expenses of the company for 2023 3. Determine the projecte
The following is the extract of the Income statement of a Rubber Glove company in Malaysia : STATEMENTS OF COMPREHENSIVE INCOME 2016 2017 2018 2019 2020 Revenue 1,377,931,000 1,529,077,000 2,079,432,000 2,053,916,000 2,314,454,000 Cost of sales -1,150,360,000 -1,155,975,000 -1,640,550,000 -1,818,767,000 -1,851,563,200   Gross profit 227,571,000 373,102,000 438,882,000 235,149,000 462,890,800                 Other Income 8,973,000 6,979,000 10,372,000 26,689,000 15,634,000   Selling and distribution expenses -46,520,000 -95,484,000 -66,008,000 -67,121,000 -71,401,000   Administration expenses -46,155,000 -53,091,000 -80,987,000 60,495,000 -178,910,800                               Operating Profit 143,869,000 231,506,000 302,259,000 134,222,000 228,213,000                 Interest income 0 0 4,288,000 10,573,000 12,340,000   Finance cost -10,151,000 -8,530,000 -639,000 -242,000 -113,000   Share of loss/profit 909,000 -984,000 -947,000 917,000 262,000   Profit before tax 134,627,000 221,992,000 304,961,000 145,470,000 240,702,000   Taxation -26,524,000 -53,922,000 -54,550,000 -30,338,000 -33,417,000   Profit / (Loss) after tax 108,103,000 168,070,000 250,411,000 115,132,000 207,285,000                   You are required : 1.     Separate the fixed and variable costs of the company 2.     Determine the projected Fixed overheads / Operating expenses of the company for 2023 3.     Determine the projected Profit margin of the company’s manufacturing operation 4.     Determine the Breakeven point of the company’s manufacturing now ? What is the current level of Safety margin of the company ? 5.     Determine the Degree of Operating Leverage  (DOL) of the company ? 6.     Determine the degree of Financial Leverage (DOL) of the company ? 7.     If the company have been selling its rubber glove at an avverage price of RM 0.40 per pair, what could be the lowest price that company could accept for a special order of say 500,000,000 gloves if the company could create the cpacity conveniently without increasing its operating costs ?   8.     Based on the average variable costs of manufacturing per pair, could the company consider taking over a manufacturing space / capacity that could produce at RM 0.15 per pair. ?