LS0822: A company has sales of 4,00,000 units at


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Question: A company has sales of 4,00,000 units at
₹5 per unit, variable cost ₹0.60 per unit, fixed cost
₹2,00,000 and interest charges of ₹3,500. Compute degree of operating leverage and financial leverage and comment on the values of each leverage.

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