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Surya kumar, a fundamental analyst is evaluating the risk inherent in the company Bellteck Ltd. He has collected the following information related to Bellteck Ltd.
Surya kumar, a fundamental analyst is evaluating the risk inherent in the company Bellteck Ltd.
He has collected the following information related to Bellteck Ltd.
Selling price per unit = Rs 500 Variable cost per unit = Rs 300 Fixed operating cost = Rs 10,00,000 Fixed interest cost = Rs 2,00,000
Surya kumar is of the view that selling quantity could be either 8000 units or 10,000 units.
Find the following (for both level of selling quantity). (a) Degree of operating leverage (b) Degree of financial leverage (c) Degree of combined leverage
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