Sachin Company has sales of ₹75,00,000. Variable cost of ₹45,00,000 and fixed cost of ₹15,00,000. Operating leverage will be:

CS Executive · Financial and Strategic Management · PYQS · June 2021
Sachin Company has sales of ₹75,00,000. Variable cost of ₹45,00,000 and fixed cost of ₹15,00,000. Operating leverage will be:
(A) 1
(B) 2
(C) 3
(D) 4

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Capital Structure

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