AXN Co. Ltd., has two products X and Y. Y's selling price @ 120% of X and sales volume of 'X' as 150% of Y's sales of 3,00,000 units @ 90 per unit. The variable cost per unit 'X' and 'Y' is 70 and 88 respectively and Fix

CS Executive · Financial and Strategic Management · PYQS · December 2021
AXN Co. Ltd., has two products X and Y. Y's selling price @ 120% of X and sales volume of 'X' as 150% of Y's sales of 3,00,000 units @ 90 per unit. The variable cost per unit 'X' and 'Y' is 70 and 88 respectively and Fixed Cost ₹ 8.50 lakh per annum. Calculate operating leverage:
(A) 1.43
(B) 1.58
(C) 1.92
(D) 1.25

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Financial Management

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