RGT Infrastructure Company has a degree of operating leverage of 3 at a sales level of 7,00,000 and operating income of 2,20,000. Fall in sales of…

CA Intermediate · Financial Management and Strategic Management · RTP · May 2025
RGT Infrastructure Company has a degree of operating leverage of 3 at a sales level of 7,00,000 and operating income of 2,20,000. Fall in sales of the company by 10% will result in decrease in operating income of:
(A) ₹ 80,000
(B) ₹ 55,000
(C) ₹ 66,000
(D) ₹ 40,000

Suggested Answer and Working Notes:

Correct Answer: Option (C)

₹ 66,000

Topics: Part-A: Financial Management

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