Question

calculate the operating leverage and financial leverage from the following data :
EBIT rs 10,00,000
PAT rs 1,00,000
operating fixed cost rs7,00,000
tax rate 40%
if the company wants to increase its PAT by 40% ,what should be the percentage rise in the sales​

Answer 1

Answer:

$\huge{\underline{\sf{\orange{Answer -}}}}$

$let \: the \: whole \: quantity \: = x$

$A/Q$

$5\% \: of \: x = 600 \\ \\ = > \frac{5 \times x}{100} = 600 \\ \\ \\= > 5 \times x = 600 \times 100 \\ \\ \\ \ \: = > x = \frac{600 \times 100}{5} \\ \\ \: \\ = > x = \frac{120 \times 100}{1} \: \\ \\ x = 12000$

Therefore, The whole quantity = 12000