X Ltd., has estimated that for a new product its break-even point is 2,000 units if the item is sold for Rs. 14 per unit, the cost accounting department has currently identified variable cost of Rs. 9 per unit. Calculate the degree of operating leverage for sales volume of 2500 units. If the firm wants to double up its earnings before interest and tax (EBIT), how much of a rise in sales would be needed on a percentage basis?
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