Installed Capacity (units) 5000

Sales (60%) (units) 3000

VC per unit 15
Total VC 45000
SP per unit 25
Total Sales 75000
Fixed Cost 10000 12000
Interest over debt 10%
Considering Tax 34%
Preference dividend be 0

when = 2/3 When = 2/3

Debt 30000 Debt 30000
Equity 45000 Equity 45000
Capital raised 75000 Capital raised 75000

Sales 75000 Sales 75000

Variable Cost 45000 Variable Cost 45000
Fixed Cost 10000 Fixed Cost 12000
EBIT 20000 EBIT 18000
Interest 3000 Interest 3000
EBT 17000 EBT 15000
Tax 5780 Tax 5100
PAT 11220 PAT 9900

DOL 1.5 DOL 1.666667

DFL 1.176471 DFL 1.2
DTL 1.764706 DTL 2

As we can see the highest leverage is with capital raised in Debt to Equ
 when = 3/2 when = 3/2
Debt 45000 Debt 45000
Equity 30000 Equity 30000
Capital raised 75000 Capital raised 75000

Sales 75000 Sales 75000

Variable Cost 45000 Variable Cost 45000
Fixed Cost 10000 Fixed Cost 12000
EBIT 20000 EBIT 18000
Interest 4500 Interest 4500
EBT 15500 EBT 13500
Tax 5270 Tax 4590
PAT 10230 PAT 8910

DOL 1.5 DOL 1.666667

DFL 1.290323 DFL 1.333333
DTL 1.935484 DTL 2.222222

h capital raised in Debt to Equity ratio of 3/2 and with Fixed cost of ₹12000