calculate the operatiing leverage .
sales rs.50000
debt / equity - 3:1
interest rate - 12%
operating profit - rs. 20,00,000
plz tell me the solution ?
CA Ankur Dhamanaskar
(Student)
(295 Points)
Replied 06 March 2010
How can operating profit be less than sales.......please check the question again.....!!!
Ratan Deep Saxena
(Asstt Manager (Accounts & Finance))
(2998 Points)
Replied 06 March 2010
Dear Jyoti,
There may be some incorrection in question. Sales can't be less than Operating profit. Please check it.
regards,
ratan
CAclubindia
