Question

Sales = ₹200 lakhs, Variable cost = ₹120 lakhs, Fixed cost = ₹30 lakhs Interest = ₹10 lakhs Calculate (i) Operating Leverage and (ii) Financial Leverage.

A 1.6 and 1.25
B 2.0 and 2.0
C 3.0 and 1.5
D 2.5 and 2.0
E 1.8 and 1.4
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