Q50537c Shivang Limited a producing 10,000 units at present. Other informations are as under:

Selling price Rs.10 p.u.
Fixed operating expenses Rs. 25,000 per annum  
Variable expenses Rs. 5 p.u.

On the basis of said information, calculate the degree of operating leverage, if the company sells

(a) 5,000 units and (b) 15,000 units.

Question based on JNU Solved Assignment and other course

Solution:

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