Additional InformationThe corporate tax applicable for the previous assessment year was 30%. The fixed interestpayments given is for the bank loan of 250,000 OMR taken at an interest rate of 4% per annum.QuestionCalculate Operating Leverage from the above given data?а. 2O b. 1.6Ос. 1.25O d. 1.5 Brodaddy LLC is a leading software solutions company in Oman, established in the year 2013.The company has branches in Dubai, Qatar and Malaysia. The company has received "theMalaysia best employer award" in the year 2020. Moreover, the company has reported 3%growth in their consolidated income during the first quarter of 2021. However, the internalauditing department of the company has raised concerns about the Business and financial riskof the companies. As a result, the board of directors has instructed Mr. Aslam Ahmed toanalyse the operating, financial and combined leverages of the company to take necessarysteps to minimize the overall risk.Data Extracted from the financial reports of the companies are given belowItemAmount / QuantitySales150,000 OMRUnit Sold1000 NosVariable cost70 OMRFixed Cost30,000 OMRInterest Expenses10,000 OMR

Degree of operating leverage means the division of contribution with net income. It means that how…

Additional Information The corporate tax applicable for the previous assessment year was 30%. The fixed interest payments given is for the bank loan of 250,000 OMR taken at an interest rate of 4% per annum. Question Calculate Operating Leverage from the above given data? O a. 2 O b. 1.6 O c. 1.25 O d. 1.5

Additional Information The corporate tax applicable for the previous assessment year was 30%. The fixed interest payments given is for the bank loan of 250,000 OMR taken at an interest rate of 4% per annum. Question Calculate Operating Leverage from the above given data? O a. 2 O b. 1.6 O c. 1.25 O d. 1.5

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Ee 68.
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