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Details P Limited [Rs. Lakhs] Q Limited [Rs. Lakhs] Sales 500 1000 Variable Costs 200 300 Contribution 300 700 Fixed Costs 150 400 EBIT 150
Details | P Limited [Rs. Lakhs] | Q Limited [Rs. Lakhs]
|
Sales | 500 | 1000 |
Variable Costs | 200 | 300 |
Contribution | 300 | 700 |
Fixed Costs | 150 | 400 |
EBIT | 150 | 300 |
Interest | 50 | 100 |
PBT | 100 | 200 |
The following figures related to two companies, namely P Limited and Q Limited. Based on such information, kindly compute operating, financial and combined leverages for the two companies and comment on the relative risk position of them.
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