Q$3.$ The capital structure of XYZ Ltd$.$ consist of an ordinary share capital of Rs$\mathrm{.}10,00,000/-($shares ofRs$\mathrm{.}100$ par value$)$ and Rs$\mathrm{.}10,00,000/-$ of $10\%.$ The company is considering to increase production by$20\%$ from $1,00,000$ units to $1,20,000$ units, the selling price is Rs$\mathrm{.}10/-$ per unit, variable cost is Rs$\mathrm{.}6/-$per unit and total fixed cost is Rs$\mathrm{.}2,00,000/-.$ Tax rate applicable is $35\%.$ Calculate $($i$)\%$ increase inEPS, $($ii$)$ DOL at $1,00,000$ and $1,20,000$ units, $($iii$)$ DFL at $1,00,000$ and $1,20,000$ units $($iv$)$ commenton the behavior of operating and financial leverage in relation to increase in the level of production.What do you advice the company? Justify your answer.