(i) = EBIT 4 DFL = EBT 1 Interest is Rs. 45,000 .. EBIT-EBT = Rs. 45,000 ... 4 EBT = EBIT .. 4 EBT - EBT = 45,000 .:. 3 EBT = 45,000 45,000 ... EBT = = Rs. 15,000 3 .. EBIT = 15,000 x 4 = Rs. 60,000 Contribution (ii) DOL = EBIT Contribution = 60,000 :: Contribution = 5 x 60,000 = Rs. 3,00,000 (iii) Variable cost as a percentage of sales = 50% Contribution is Rs. 3,00,000 Variable cost is also Rs. 3,00,000 .. Sales = Rs. 6,00,000 27 Illustration 9: From the following information available for four companies, calculate: () EBIT (ii) EPS (iii) Operating leverage (iv) Financial leverage P Q R S Particulars Sales price per unit Variable cost per unit Quantity Fixed costs Interest Nos Rs. 15 20 25 30 Rs. 10 15 20 25 20,000 25,000 30,000| 40,000 Rs. 30,000 40,000 50,000 60,000 Rs. 15,000 25,000 35,000 40,000 percent 40 40 40 40 Nos. 5000 9000 10,000 12,000 (ICU A/Inter Dec. 1996) Tax rate No. of Equity Shares