X company has sales of ₹12,00,000, Variable Cost is 50% and fixed cost ₹2,50,000. Operating leverage of the company is :

CS Executive · Financial and Strategic Management · PYQS · December 2020
X company has sales of ₹12,00,000, Variable Cost is 50% and fixed cost ₹2,50,000. Operating leverage of the company is :
(A) 1.33
(B) 1.67
(C) 1.71
(D) 2

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Financial Management

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