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1,000,000 units sell at Rs 50; variable cost Rs 10; fixed cost Rs 1 crore. DOL?

A1.25
B4.0
C0.75
D1.33
Answer & Solution
Correct answer: D. 1.33
Contribution is 4 crore and EBIT is 3 crore, so DOL is 4 divided by 3, about 1.33.
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