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56% ? 7 B. Les Verteblo com Contrbution La Freedom 2800,000 10.00.000 10,00,000 0,00,000 8,00.000 Operating Proth Combined leverage - Operating leverngo x Financial leverage Calculation of financial laverage Contribution Operating Profit 10,00,000 5,00,000 2 Calculation of financial leverago Earning before Interest and Tax (EBIT) 5,00,000 lass: Interest on Debenture (8% of 12,50,000) 1,00,000 Earnings before Tax 400.000 Operating leverage Operating Profit 5,00,000 -1.25 Earning Before Tax 4,00,000 Combined leverage - 2* 1.25 - 2.5 Exercise 6 Calculate the operating, financial and combined leverage under situations 1 and 2 the financial plans for X and Y respectively from the following information relating to operating and capital structure of a company, and also find out which gives the highest the least value ? Installed capacity is 5000 units Annual Production and sales at 60 % installed capacity Selling price per unit Rs. 25 Variable cost per unit Rs. 15 Fixed cost: Situation 1 : Rs. 10,000 Situation 2 Rs. 12,000 30 ex 5 only Address Links EEEEEEEE EN