Operating leverage and combined leverage
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Degree of operating leverage?
Degree of Combined leverage:
Sales: 440,000
TVC: 240,000
Fixed Costs: 96,000
EBIT: 104,000
Interest 19200
EBT 84800
Tax at 35% 29680
net Income 55120
Shares outstanding: 16000
EPS 3.44
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Solution Summary
This solution explains how to calculate operating leverage and combined leverage for the given problem.
Solution Preview
Operating Leverage = (Sales - TVC)/(Sales - TVC - Fixed cost) = ...
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