Q. 9 Hw Leverage & Capital Structure management Weather Coats Paint Ltd. has fixed operating costs of Rs. 36 million a year. Variable operating costs are 180 per half liter of paint produced, and the average selling price is Rs. 200 per half liter. You are required to answer the following questions with computations to support each one of your answer. 1. What is the annual operating break-even point in half liters (QBE) and 2. What would be the effect on the operating break-even point (QBE) of a simultaneous decline to Rs. 170 per half liter in the variable operating costs and an increment of 20 per cent in the fixed cost? level of 2 million half liters. 3. Compute the degree of operating leverage (DOL) at the current sales 2. 10 1400 has a share capital of Rs. 1,00,000 divided into
