1. A firm's details are as under: Sales (@100 per unit)Rs. 24,00,000 Variable Cost50% of sale Fixed...

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1.A firm's details are as under:

Sales (@100 per unit)Rs. 24,00,000

Variable Cost50% of sale

Fixed CostRs. 10,00,000

It has borrowed Rs. 10,00,000 @ 10% p.a. and its equity share capital is Rs. 10,00,000 (Rs. 100 each)

Calculate:

(a)Degree of Operating Leverage

(b)Degree of Financial Leverage

(c)Degree of Combined Leverage

(d) If the sales increases by Rs. 6,00,000; what will the new EBIT?

Posted Date: Jun 14, 2024 12:11 AM

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1. A firm's details are as under: Sales (@100 per unit)Rs. 24,00,000 Variable Cost50% of sale Fixed...

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