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Firm T income statement is given below Firm T ($) SALES 750.000 VARIABLE COST CONTRIBUTOIN FIXED COST (210.000) 540.000 (270.000) 270.000 EBIT INTERST PROFIT BEFORE
Firm T income statement is given below Firm T ($) SALES 750.000 VARIABLE COST CONTRIBUTOIN FIXED COST (210.000) 540.000 (270.000) 270.000 EBIT INTERST PROFIT BEFORE TAX (162.000) 108.000 a) calculate the financial leverage, operating leverage and combined leverage ? b) if sales increase 10% what is the operating leverage c) if sales decrease 10% what is the operating leverage
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