Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on May 18, 2024

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?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles of Finance

Authors: Scott Besley, Eugene F. Brigham

6th edition

9781305178045, 1285429648, 1305178041, 978-1285429649

More Books

Students also viewed these Finance questions

Question

Please see attached file for complete questions set. 1.W&B Corp. has current liabilities of $460,000, a quick ratio of .83, inventory turnover of 5.9, and a current ratio of 1.5. What is the cost of...

Answered: 1 week ago

Question

List four basic financial statement analysis procedures, describe how you would calculate each procedure and discuss why you would use each procedure. In your initial response, please do not use...

Answered: 1 week ago

Question

Hello. Can you help with this four question problem? Case PRIVATE EQUITY CASE: MERGER CONSOLIDATION The questions below COMBINE the Ohio & Maryland PT acquisitions as if they are a single c Learning...

Answered: 1 week ago

Question

★★★★★

Hines stored her furniture, including a grand piano, in Arnetts warehouse. Needing more space, Arnett stored Hiness piano in Butlers warehouse next door. As a result of a fire, which occurred without...

Answered: 1 week ago

Question

★★★★★

(a) What costs are included in a performance report for a cost center? (b) In the report, are variable and fixed costs identified?

Answered: 1 week ago

Question

★★★★★

Why are revenue synergies typically given less weight than cost synergies when evaluating the combination benefits of a transaction?

Answered: 1 week ago

Question

★★★★★

What can clinical psychologists do to maximize the generalizability of an analogue study to a broader population?

Answered: 1 week ago

Question

★★★★★

The following circuit operates if and only if there is a path of functional devices from left to right. The probability that each device functions is as shown. Assume that the probability that a...

Answered: 1 week ago

Question

★★★★★

Perform the brainstorming step for the hotel reservation system using the description produced in exercise 5.2

Answered: 1 week ago

Question

★★★★★

Question: Glocker Company makes three products in a single facilty These products have the following unit product costs Product Direct materials Direct labor Variable manufacturing ovehead Fixed...

Answered: 1 week ago

Question

★★★★★

Florida procedures : Jonah's answer to the complaint was due Friday, June 1. He sought a 14 - day extension, which the trial court granted on Monday, June 4. When is Jonah's answer due? June Su Mo Tu...

Answered: 1 week ago

Question

★★★★★

Please read The Case of the Million Dollar Decision that can be found at the link below: https://www.scu.edu/ethics/focus-areas/business-ethics/resources/the-case-of-the-million-dollar-decision/...

Answered: 1 week ago

Question

★★★★★

A shunt motor in Figure P14.30 is characterized by a field coefficient kf 0.12 V-s/A-rad, such that the back emf is given by the expression Eb = kfifw and the motor torque by the expression T =...

Answered: 1 week ago

Question

★★★★★

Peggy works at a financial institution where there is high morale and employees are all willing to jump in to answer questions for each other and assist when someone needs help or faces a critical...

Answered: 1 week ago

Question

★★★★★

Frank Weston, supervisor of the Freemont Corporation's Machining Department, was visibly upset after being reprimanded for his department's poor performance over the prior month. The department's...

Answered: 1 week ago

Question

★★★★★

A graphic designer needs a laptop for audio/video editing, and notices that they can elect to pay $3,500 for a Dell XPS laptop, or lease from the manufacturer for monthly payments of $94 each for...

Answered: 1 week ago

Question

★★★★★

(a) Prove that form an orthonormal basis for R3 for the usual dot product. (b) Find the coordinates of v = (1, 1, 1)T relative to this basis. (c) Verify formula (5.5) in this particular case. 48-65...

Answered: 1 week ago

Question

★★★★★

Burnout. The HR director of a company has noticed an increasing number of employees suffering from burnout, in which physical and emotional fatigue hurt job performance. The HR director has read that...

Answered: 1 week ago

Question

★★★★★

Reliable model? In justifying their choice for a model, a person says, I know this models prediction is reliable because R2 = 98.7%. a) Is this reasoning correct? Explain. b) What else is needed to...

Answered: 1 week ago

Question

★★★★★

Human Development Index (HDI) 2019. The United Nations Development Programme (UNDP) collects data from developing countries to help solve global as well as national development challenges and reduce...

Answered: 1 week ago

Previous Question Next Question