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A firm has sales of 1 0 lakhs, variable cost of 7 lakhs and fixed costs of 2 0 0 0 0 0 , and

A firm has sales of 10 lakhs, variable cost of 7 lakhs and fixed costs of 200000, and debt of 5 lakhs at 10% rate of interest. What are the operating, financial and combined (total) leverages? If the firm wants to double 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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