X Itd has actual Sales of 20 lakhs and its Break-even sales are at 15 lakhs. The degree of total risk involved in the company is 6.5. Calculate the…

CA Intermediate · Financial Management and Strategic Management · MTP · September 2024
X Itd has actual Sales of 20 lakhs and its Break-even sales are at 15 lakhs. The degree of total risk involved in the company is 6.5. Calculate the % impact on EPS, if EBIT is affected by 12%.
(A) 40%
(B) 78%
(C) 312%
(D) 19.5%

Suggested Answer and Working Notes:

Correct Answer: Option (D)

19.5%

Topics: Part-A: Financial Management

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