Based on the following information, calculate the degree of operating leverage an companies Sales Fixed Costs X Ltd. (Am. in ) 50,00,000 15,00,000
Based on the following information, calculate the degree of operating leverage an companies Sales Fixed Costs X Ltd. (Am. in ) 50,00,000 15,00,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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he degree of operating leverage
Transcribed Image Text:Q14. In this section, attempt any 4 out of 6 questions in 200-250 words.
mine
Based on the following information,
companies
calculate the degree of operating leverage and also comment on the business risk of
21450
X Ltd. (Am in)
Sales
50,00.000
Fixed Costs
15,00,000
Variable expenses are 40% of sales for fimm X and 15% for firm Y.
Y Ltd. (Amin)
60,00,000
30,00,000
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