Avantika Batteries manufactures small batteries for electronic goods. The owner asks the finance officer to chalk out a detailed production planning to maximise the profit in face of severe...

Avantika Batteries manufactures small batteries for electronic goods. The owner asks the finance officer to chalk out a detailed production planning to maximise the profit in face of severe competition in the market. The finance manager finds out the level of expenditures, and accordingly, he suggests the measures. The present level of different costs and the sale price of three different groups of products are as follows:

There is a wide difference in the variables relating to the three groups of products. The finance manager has to find out the different types of leverages to frame a sound financial policy

1. Find out the degree of operating leverage.

2. Find out the degree of combined leverage.

3. Find out the degree of financial leverage.