If the company has sales of Rs. 82.5 Lacs, variable cost Rs. 46.2 Lac, fixed cost Rs 6.6 lac. Find financial leverage of firmOptions :3.766.781.182.76
Question
Solution 1
To find the financial leverage of the firm, we can use the formula:
Financial Leverage = Total Sales / (Total Sales - Variable Cost)
Given: Total Sales = Rs. 82.5 Lacs Variable Cost = Rs. 46.2 Lacs
Substituting the values into the formula:
Financial Leverage = 82.5 / (82.5 - 46.2)
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