Question
B-2) A firm has sales of Rs. 10 lacs and fixed cost of Rs. 1.5 lacs. Contribution margin is 30%. It has 10% debt
B-2) A firm has sales of Rs. 10 lacs and fixed cost of Rs. 1.5 lacs. Contribution margin is 30%. It has 10% debt of Rs. 8 lacs. Find out Operating leverage, Financial leverage and Combined leverage. Also find out that if the firm wants to double the EBIT, how much percent increase in sales is needed?
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Intermediate Accounting principles and analysis
Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso
2nd Edition
471737933, 978-0471737933
