alleryStart learning →Price Rs 50, variable cost Rs 30, 5,000 units, fixed cost Rs 40,000. DOL?
A1.25
B1.67
C2.5
D1.5
Answer & Solution
Correct answer: B. 1.67
Contribution is 20 times 5,000, which is 1,00,000, and EBIT is 60,000, so DOL is 1.67.
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