If the company has sales of Rs. 82.5 Lacs, variable cost Rs. 46.2 Lac, fixed cost Rs 6.6 lac. Find financial leverage of firmOptions :3.766.781.182.76

To find the financial leverage of the firm, we can use the formula:

Financial Leverage = Total Sales / (Total Sales - Variable Cost)

Given: Total Sales = Rs. 82.5 Lacs Variable Cost = Rs. 46.2 Lacs

Substituting the values into the formula:

Financial Leverage = 82.5 / (82.5 - 46.2)

Financial Leverage = 82.5 / 36.3

Financial Leverage ≈ 2.27

Therefore, the financial leverage of the firm is approximately 2.27.

To find the financial leverage of the firm, we can use the formula:

Financial Leverage = Total Assets / Equity

However, the given information does not include the total assets or equity of the firm. Therefore, we cannot directly calculate the financial leverage using this formula.

Financial leverage is typically calculated using the ratio of fixed costs to variable costs. The formula for financial leverage is:

Financial Leverage = Fixed Costs / (Fixed Costs + Variable Costs)

In this case, the fixed costs are given as Rs 6.6 lac and the variable costs are given as Rs 46.2 lac.

Financial Leverage = 6.6 lac / (6.6 lac + 46.2 lac)

Simplifying the equation:

Financial Leverage = 6.6 lac / 52.8 lac

Financial Leverage = 0.125

Therefore, the financial leverage of the firm is 0.125.

None of the given options (3.76, 7.81, 1.18, 2.76) match the calculated financial leverage.

To find the financial leverage of the firm, we can use the formula:

Financial Leverage = Total Assets / Equity

However, the given information does not include the total assets or equity of the firm. Therefore, we cannot directly calculate the financial leverage using this formula.

Financial leverage is typically calculated using the ratio of fixed costs to variable costs. The formula for financial leverage is:

Financial Leverage = Fixed Costs / (Fixed Costs + Variable Costs)

In this case, the fixed costs are given as Rs 6.6 lac and the variable costs are given as Rs 46.2 lac.

Financial Leverage = 6.6 lac / (6.6 lac + 46.2 lac)

Simplifying the equation:

Financial Leverage = 6.6 lac / 52.8 lac

Financial Leverage = 0.125

Therefore, the financial leverage of the firm is 0.125.

None of the given options (3.76, 7.81, 1.18, 2.76) match the calculated financial leverage.