Question 6 [24]Hardware House (Pty) Ltd is a retailer of a wide


SUMMATIVE ASSESSMENT (ASSIGNMENT) - 2020 FIRST SEMESTERFMA101FINANCIAL MANAGEMENT IQuestion 6 [24]Hardware House (Pty) Ltd is a retailer of a extensive file of hardware products. It has branchesthroughout the empire and its temporization is to growth its sales produce by aperture over stores.The posse solutions the ground of all its stores. The ruler government, at-last, issolicitous that its temporization could be very disadvantageous to playing income should there be adownturn in the dispensation, such as a recession.One of the financial tools government wants to use to assess the vulnerability of its income isto designate the playing leverage of the office.At the developed ruler government parley, the aftercited knowledge was boardd, discussedand approved to be used to designate playing leverage:20192020 projectedActualgrowth (decrease)RevenueR25 670 000R30 804 000Cost of movables sold17 110 00020 874 200Operating expenses3 523 0003 748 460Selling expenses1 080 0001 004 400General and negotiative expenses1 870 0001 944 800Property solution expense350 000549 500Depreciation223 0001249 760Required:6.1.Complete the knowledge in the board for 2019 and 2020, and then use the knowledgein the board to count Hardware House's amount of playing leverage (DOL) andexplain its commodities on playing improvement.18)6.2.Should the posse be solicitous about the likely denying commodities that its temporizationcan accept on income in thin economic provisions? Give reasons for your reply.

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