Francois French manufactures cheese,which he normally sells at €20/kg,on which sales commission of 5% is paid.Plant capacity is 7,500 kg/month.Income tax is levied at 30%.
If sales are 5,000 kgs,which of the following is true?
A) Total contribution margin is €50,000
B) Ratio of total contribution margin to net income before taxes is 3.57
C) Taxes payable are €4,200
D) Operating leverage is 42%
E) All of the above
Correct Answer:
Verified
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