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No handwriting Problem No. 1] Prepare the income statement and calculate the degree of operating leverage, degree of financial leverage, and the degree of combined

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Problem No. 1] Prepare the income statement and calculate the degree of operating leverage, degree of financial leverage, and the degree of combined leverage for the following companies: P R Company Output (units) Fixed costs (Rs.) 3,00,000 3,50,000 Q 75,000 7,00,000 5,00,000 75,000 Unit variable cost (Rs.) 1.00 7.50 0.10 Interest expenses (Rs.) 25,000 40,000 25,000 Unit selling price (Rs.) 3.00 25.00 0.50 Applicable tax rate is 35%

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