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A soft drink company sells 500,000 bottles of soft drinks a year. Each bottle produced has a variable cost of Rs.025 and sells for Rs.0.45.
A soft drink company sells 500,000 bottles of soft drinks a year. Each bottle produced has a variable cost of Rs.025 and sells for Rs.0.45. Fixed Operating costs are Rs. 50000. The company has current interest charges of Rs. 6000 and preferred dividends of Rs. 2400. The corporate tax rate is 40 percent . What are the degree of Operating leverage, financial leverage and Total Leverage? (4,10)
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