Pv ratio

step-1 find Combined leverage
Step-2 cont/EBT =2.5/1
cont/EBIT-Int=2.5/1
cont=2.5EBIT-605000.........(1)
O.l=2/1
contribution/EBIT=2/1
cont.=2EBIT..........(2)
solve eq1 and 2
2EBIT=2.5 EBIT-605000
EBIT=1210000
cont=EBIT + F.cost

Not right.. different from ICAI suggested answers of Nov 2017 exams

yes u can do in that way too.

is that answer difficult for u to understand?

Did you check suggested answers?Yes we can solve this question in another way too ie. by taking operating leverage or FL as a base.But don't you think answer should be the same. But in this case answer is different .that's why I am asking