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A firm has sales of 20,00,000, variable cost of 14,00,000, fixed cost of 4,00,000 and debt of 10,00,000 at 10% rate of interest. Calculate the

A firm has sales of 20,00,000, variable cost of 14,00,000, fixed cost of 4,00,000 and debt of 10,00,000 at 10% rate of interest. Calculate the operating, financial and combined leverages. If the firm wants to triple its earnings before interest and tax (EBIT), how much of a rise in sales would be needed on a percentage basis? 15

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