5,00,000 3,40,000 = 1.47 Times. (b) Earning per share at the new sales level: Sales level Less: Variable Cost (26.47%) Contribution Less: Fixed Cost |EBIT Less: Interest WBT Less: Tax PAT/EAT Number of Equity Shares Earning per share (EPS) Rs. Sales Sales increase decrease by 20% (Rs.) by 20% (Rs.) 8,16,000 5,44,000 2,15,995 1,43,997 6,00,005 4,00,003 60,000 60,000 5,40,005 3,40,003 1,00,000 1,00,000 4,40,005 2,40,003 1,32,000 72,000 3,08,005 1,68,003 1,00,000 1,00,000 3.08 1.68 24 Illustration 5: Calculate the Operating Leverage, Financial Leverage and Combined Leverage from the following data under situation I and II and Financial Plan A and B: 4800 units 75% of the capacity Rs. 30 per unit Rs. 15 per unit Installed Capacity Actual production and sales Selling price Variable cost Fixed cost Under situation ! Under situation 11 Capital Structure Rs. 25,000 Rs. 30,000 Financial Plan A (Rs.) B (Rs.) 1,00,000 1,50,000 1,00,000 50,000 2,00,000 2.00,000 Equity Debt @ 15%