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With steps This all the information we got in the questions The following...

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Accounting

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This all the information we got in the questions

The following information is available for Astrid Ltd and Duncast Ltd. Astrid Units produced and sold 30 000 Duncast 30 000 Revenues Rm 112.5 85.0 55.0 30.01 Rm 112.5 85.0 30.0 55.0 Variable costs Fixed costs Net Operating income 27.5 27.5 Required: a) Find the break-even point for each company in units. [5] b) Calculate the degree of operating leverage for each company at 30 000 units. [5] c) Given the choice to invest in one of the two companies, which one would you invest in? Discuss by giving appropriate examples and scenarios based on the calculations above. [5]

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