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BBA (505)
ASSIGNMENT
Summer 2016-2017
S Ltd R Ltd
Sales : 25,00,000 30,00,000
Fixed costs : 7,50,000 15,00,000
Variable expenses 50% of sales for firm S 25%
for firm R.
Ans )
S Company R Company
Sales 2500000 30,00,000
-Variable costs 12,50,000 7,50,000
- Fixed costs 7,50,000 15,00,000
EBIT (operating 5,00,000 7,50,000
profits)
𝒔𝒂𝒍𝒆𝒔−𝑽𝑪
DOL= 25,00,000 − 12,50,000 30,00,000 − 7,50,000
𝑬𝑩𝑰𝑻
5,00,000 7,50,000
12,50,000 25,50,000
DOL S = =2.5 DOL R = =3
5,00,000 7,50,000