leverage, lage from the following data: Sales 1,00,000 units @ Rs. 2 per unit = Rs.2,00,000. Variable cost per unit@Rs.0.70. Fixed cost Rs. 1,00,000. Interest charges Rs. 3668.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter14: Capital Structure Management In Practice
Section: Chapter Questions
Problem 11P
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Catculate the degree of operating leverage, financial leverage, and the combined leverage
from the following data: Sales 1,00,000 units @ Rs. 2 per unit = Rs.2,00,000. Variable cost
per unit@Rs.0.70. Fixed cost Rs. 1,00,000. Interest charges Rs. 3668.
Transcribed Image Text:Catculate the degree of operating leverage, financial leverage, and the combined leverage from the following data: Sales 1,00,000 units @ Rs. 2 per unit = Rs.2,00,000. Variable cost per unit@Rs.0.70. Fixed cost Rs. 1,00,000. Interest charges Rs. 3668.
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