Given information for a year are sales Rs. 12 lacs, variable cost Rs. 8 lacs, fixed operating cost Rs. 2 lacs. Interest on borrowing Rs. 1 lac. Calculate operating Leverage a. 4 Ob. 2 OC. 8 O d. 5

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter15: Capital Investment Analysis
Section: Chapter Questions
Problem 15.1.1MBA
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Given information for a year are sales Rs. 12 lacs, variable cost Rs. 8 lacs, fixed operating cost Rs. 2 lacs. Interest on borrowing Rs. 1 lac. Calculate operating Leverage

 

a. 4

 

Ob. 2

 

OC. 8

 

O d. 5

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