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Corporate FinanceAssignment 21.Chandrasekar is running a company manufacturing and selling electronic toy with the installed capacity of1,00,000 quantities per annum. It is currently selling at 75,000 units. The cost sheet is given below:a.Price per unit ₹200b.Variable cost per unit ₹120c.Fixed cost ₹20,00,000d.Interest ₹12,00,000e.Tax rate 35%f.No. of outstanding shares 10,00,000As per next year forecast there are two possibilities i) the selling will come down by 15,000 units ii) the selling mayreach the full installed capacity. In each case, what contributed the profit or loss (Operating and financialleverages).i.How will you use the degree of leverages to calculate new EBIT and new EPS?ii.Now check with income statement the results are correct or not.iii.Calculate the new DOL, DFL & DCL and commentOperating Leverage=EBIT/SalesFinancial Leverage=EBIT/EBTCombined Leverage=EPS/SalesParticularsi.ii.iii.Sales1,50,00,0001,20,00,0002,00,00,000Less: Variable Cost90,00,00072,00,0001,20,00,000Contribution60,00,00048,00,00080,00,000Less: Fixed Cost20,00,00020,00,00020,00,000EBIT40,00,00028,00,00060,00,000Less: Interest12,00,00012,00,00012,00,000EBT28,00,00016,00,00048,00,000