Correct Answer: 3. 6 times
Solution:Given: Units Sold = 10,000
Selling Price per unit = 500
Variable Cost per unit = ₹ 200
Fixed Operating Cost = 25,00,000
Contribution per unit
= Selling Price - Variable Cost
=₹ 500 - ₹ 200 = ₹ 300
Total Contribution
= 10,000 × ₹ 300 = ₹ 30,00,000
Operating Leverage = Total Contribution EBIT
EBIT = Total Contribution - Fixed Costs
= ₹ 30,00,000 ₹ 25,00,000
= ₹ 5,00,000
Operating Leverage
=₹ 30,00,000 ÷ ₹5,00,000 = 6 times.