Soft Toys manufactures teddy bears, selling 350,000 teddy bears at Rs. 26 per teddy bear. Fixed operating costs are Rs. 28,000 while variable operating costs are Rs. 16 per teddy bear. The manufacturer has annual interest charges of Rs. 4,500 on long-term debts, preferred dividends of Rs. 3,000, and a 40% tax rate.
a) Calculate the operating breakeven point in units.
b) Calculate the degree of operating leverage (DOL) at base sales levels.
c) Calculate the degree of financial leverage (DFL).
d) Calculate the degree of total leverage (DTL)​