Question

Calculate operating leverage, financial leverage and combined leverage from the following: Sales 40,000 units @5,p. u., * 2,00,000, variable cost @ 2 p. u. 80,000, fixed costs * 90,000, interest on Debt capital * 5,000.​

Answer 1

Sales 40,000 units @5,p. u., * 2,00,000, variable cost @ 2 p. u. 80,000, fixed costs

40,000 units @5,p. u., * 2,00,000, variable cost @ 2 p. u. 80,000, fixed costs * 90,000