13. Calculate

(a) the Operating Leverage,

(b) Financial Leverage and

(c) Combined Leverage from the following data under situations I and II and financial plans A and B.

Installed capacity, 2,000 units Actual production and sales, 50% of the capacity Selling price, `20 per unit Variable cost, `10 per unit Fixed cost:

Under situation I, `4,000 Under situation II, 5,000 Capital Structure:

Particulars Financial Plan A B Equity 5,000 15,000 Debt (20% interest) 15,000 5,000 Total 20,000 20,000 Situation I Situation II DOL 1.67 2 Financial Plan A Financial Plan B Financial Plan A Financial Plan B DFL 1.33 1.09 1.43 1.11 DCL 2.22 1.82 2.86 2.22