Question: Calculate operating, financial and combined leverages under situations when fixed costs are: (i) Rs. 5,000 and (ii) Rs. 10,000 and financial plans 1 and

Calculate operating, financial and combined leverages under situations when fixed costs are:

Calculate operating, financial and combined leverages under situations when fixed costs are: (i) Rs. 5,000 and (ii) Rs. 10,000 and financial plans 1 and 2 respectively from the following information pertaining to the operating and capital structure of a textile company : Total Assets Total Assets turnover Variable cost as percentage of sales Capital structure Equity 10% debentures Rs. 30,000 1 Rs. 30,000 10,000 2 60 Financial Plan 2 Rs. 10,000 30,000

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