Business Studies

Arpana Pvt Ltd provide following information:
Sales = 10,00,000
Variable cost = 7,00,000
Fixed cost = 2,00,000
Debentures at $$10\%$$ = 5,00,000
What is the operating leverage of the company? 


ANSWER

3


SOLUTION
Operating leverage = $$\frac{Contribution}{EBIT}$$
=  $$\frac{Rs.3,00,000}{Rs.1,00,000}$$
= 3
View Answers

You're just one step away

Create your Digital Resume For FREE on your name's sub domain "yourname.wcard.io". Register Here!


Single Correct Medium Published on 18th 08, 2020
Next Question
Questions 244531
Subjects 8
Chapters 125
Enrolled Students 202
Enroll Now For FREE

Realted Questions

Q1 Single Correct Medium
Which of the following is most appropriate beginning for a fund raising press release?
  • A. Asking for cheques towards payment
  • B. Inviting for money
  • C. Explaining the purpose
  • D. None of the above

Asked in: Business Studies - Sources of Business Finance


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q2 Subjective Medium
What is meant by 'Financial Risk'?

Asked in: Business Studies - Sources of Business Finance


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q3 Single Correct Medium
When shares are not payable in a lump sum, first instalment is called ___________.
  • A. Application Money
  • B. Allotment Money
  • C. First Call Money
  • D. Final Call Money

Asked in: Business Studies - Sources of Business Finance


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q4 Single Correct Medium
The funds required for a period of more than one year but less than five years is called ____________.
  • A. long-term finance
  • B. medium-term finance
  • C. short-term finance
  • D. none of the above

Asked in: Business Studies - Sources of Business Finance


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q5 TRUE/FALSE Medium
state the following statements are True or False:
An individual can become a part of the company if the individual purchases the companies debt. 
  • A. True
  • B. False

Asked in: Business Studies - Sources of Business Finance


1 Verified Answer | Published on 18th 08, 2020

View Answer