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Francois French Manufactures Cheese,which He Normally Sells at €20/kg,on

Question 12

Multiple Choice

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%. <sub> </sub>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 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

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