A company has sales of ₹2,00,000. The variable costs are 40% of the sales while the fixed operating costs amount to ₹ 30,000. The amount of interest on long-term debts is ₹ 10,000. You are required to calculate the combi

CS Executive · Financial and Strategic Management · PYQS · December 2024
A company has sales of ₹2,00,000. The variable costs are 40% of the sales while the fixed operating costs amount to ₹ 30,000. The amount of interest on long-term debts is ₹ 10,000. You are required to calculate the combined leverage.
(A) 4
(B) 3
(C) 2
(D) 1.5

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Financial Management

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