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The installed capacity of Manasvi Limited is 10,000 units per annum. Actual capacity used is 8,000 units per annum. Cost is 3 per unit.

The installed capacity of Manasvi Limited is 10,000 units per annum. Actual capacity used is 8,000 units per annum. Cost is 3 per unit. Calculate the operating leverage in each of the following Selling price per unit is 5. Variable. three situations and comment : (i) When Fixed Costs are (ii) When Fixed Costs are (iii) When Fixed Costs are 6,000 per annum. 8,000 per annum. 12,000 per annum.

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