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Leverage 4. Following information has been extracted from the accounts of newly incorporated Texty Pvt. Ltd. for the Financial Year 2020-21: Sales 15,00,000 P/V ratio

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Leverage 4. Following information has been extracted from the accounts of newly incorporated Texty Pvt. Ltd. for the Financial Year 2020-21: Sales 15,00,000 P/V ratio 70% Operating Leverage 1.4 times Financial Leverage 1.25 times Using the concept of leverage, find out and verify in each case: (1) The percentage change in taxable income if sales increase by 15%. (ii) The percentage change in EBIT if sales decrease by 10%. (ii) The percentage change in taxable income if EBIT increase by 15%

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