14. Calculate

(a) 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, 4,000 units Actual production and sales, 75 percent of the capacity Selling price, `30 per unit Variable cost, `15 per unit Fixed cost:

Under situation I, `15,000 Under situation II, 20,000 Capital Structure:

Particulars Financial Plan A B Equity 10,000 15,000 Debt (20% interest) 10,000 5,000 Total 20,000 20,000 Situation I Situation II DOL 1.5 1.8 Financial Plan A Financial Plan B Financial Plan A Financial Plan B DFL 1.03 1.07 1.09 1.04 DCL 1.61 1.54 1.96 1.87