17. The following data is available for PQR Ltd:

Sales = `2,00,000, variable cost = `60,000, fixed cost = `1,00,000, interest = 5,000, Find out:

(a) Using the concept of operating Leverage, by what percentage will EBIT increase if there is 10% increase in sales?

(b) Using the concept of financial Leverage, by what percentage will the taxable income increase if EBIT increase by 6%?

(c) Using the concept of Leverage, by what percentage will the taxable income increase if the sales increase by 6%?. Also verify results in view of the above figures.