Estimate and interpret the degree of operating leverage of P Ltd. and Q Ltd. Based on the
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Estimate and interpret the degree of operating leverage of P Ltd. and Q Ltd. Based on the following data:
| P Ltd. (Amt. in ₹) | Q Ltd. (Amt. in ₹) |
Sales | 16,00,000 | 20,00,000 |
Fixed Costs | 5,00,000 | 10,00,000 |
Variable expenses are 40% of sales for firm P and 30% for firm Q.
Related Book For
Horngrens Accounting
ISBN: 978-0134674681
12th edition
Authors: Tracie L. Miller nobles, Brenda L. Mattison, Ella Mae Matsumura
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