Question

A firm has a sales of Rs. 20,00,000. The variable
cost is Rs. 14,00,000 and fixed cost Rs. 4,00,000
and debt is Rs. 10,00,000 at 10% rate of interest.
Find out the leverages.

Answer 1

Answer:

Explanation:

There are three types of leverages

1)operating leverage

2) financing leverage