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%.
Francois French wants to increase after-tax profits to €35,000.Assuming sufficient demand,which strategy achieves this goal?
A) Sell 7,100 kgs at the present price
B) Pay the dairy €1/kg less and sell 7,500 kgs
C) Sell 8,000 kgs at €20.79/kg
D) Sell 7,500 kgs at the present price and eliminate the sales commission
E) None of the above
Correct Answer:
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