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The following data is available for XYS Ltd. Particulars Amount Sales 4,00,000 Less: Variable Cost 1,20,000 Contribution 2,80,000 Less: Fixed Cost 1,50,000 EBIT 1,30,000 Less:
The following data is available for XYS Ltd. Particulars Amount Sales 4,00,000 Less: Variable Cost 1,20,000 Contribution 2,80,000 Less: Fixed Cost 1,50,000 EBIT 1,30,000 Less: interest 25,000 Profit Before Tax 1,05,000 (a) Using concept of leverage, by what percentage will the taxable income increase, if EBIT increases by 15%. (b) Using the concept of leverage, by what percentage will EBIT increase if there is 8% increase in sales and, (C) Using the concept of leverage, by what percentage will the taxable income increase if the sales increase by 6%. Also verify the results in view of the above figures
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