Multiple Choice Questions on Sales Rs 2 00 000 Variable Costs Rs 1 40 000 Fixed costs Rs 40 000 10 interest on debt of Rs 1 00 00........... for Punjab Government (Allied) Exams Preparation

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Multiple Choice Questions

Sales Rs 2 00 000 Variable Costs Rs 1 40 000 Fixed costs Rs 40 000 10 interest on debt of Rs 1 00 00...........

Finance( Revenue Account ) Leverage
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    Sales Rs. 2,00,000, Variable Costs Rs. 1,40,000, Fixed costs Rs. 40,000, 10% interest on debt of Rs. 1,00,000. Combined leverage will be:

    4

    Incorrect Answer

    3

    Incorrect Answer

    6 

    Correct Answer

    2

    Incorrect Answer
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    Explanation:

     Combined leverage = Contribution/Earning before Tax = 60000/10000= 6 times

    By: Vikas Goyal
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