Answer to Question #336096 in Financial Math for Pratiksha

Question #336096

For a business firm leverage is about the fixed operating cost and the fixed finance costs in the cost structure of the firm. For the given details, identify for which firm the degree of operating leverage and degree of financial leverage are higher and why so:


Firms Amrit Baayu

Sales (Rs.) 360000 750000

Variable cost p.u 20 150

Fixed cost (Rs.) 72000 140000

Output (units) 6000 1500

Interest 40000 80000


0
Service report
It's been a while since this question is posted here. Still, the answer hasn't been got. Consider converting this question to a fully qualified assignment, and we will try to assist. Please click the link below to proceed: Submit order

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be the first!

Leave a comment

LATEST TUTORIALS
New on Blog
APPROVED BY CLIENTS