Question: 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

 Calculate (a) the operating leverage, (b) financial leverage and (c) combined

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, 5,000 units Actual production and sales, 80 per cent of the capacity Selling price, Rs 40 per unit Variable cost, Rs 25 per unit Fixed cost: Under Rs Situation I, 18,000 Under situation II 25,000 Capital structure: Particulars Rs 15,000 Financial plan B Rs 20,000 Equity Debt (0.20 interest) 15,000 30,000 10,000 30,000

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