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XYZ Ltd. has an average selling price of Rs.10 per unit. Its variable cost are Rs.7 , and fixed cost amount to Rs.170000. it finances all its assets by equity funds. It pays 35% tax on its income.
ABC Ltd. is identical to XYZ Ltd except in the pattern of financing. The latter finances its assets 50% by equity and 50% by debt, the interest on which amounts to Rs.20000.
Determine the DOL, DOF and DOC at Rs.70000 sales for both the firm, and interpret the results.
Basic EOQ Model The basic inventory decision model is Economic Order Quantity or called EOQ model. This model is specified via the following equation as: Whereas:Q is
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