I) Degree of operating leverage. ii)Degree of financial leverage. ii)Degree of combined leverage

Topic 5: LEVERAGE EXAMPLE 1: Fixed cost RM 500,000 Variable cost (per unit) RM 2 Price RM 10 Expected Sales (No. of units) 100,000 Fixed Financing cost RM 100,000 Degree of Operating Leverage ii) Degree of Financial Leverage Degree of Combined Leverage