A company operates at a production level of 1,000 units. The contribution is 60 per unit, operating leverage is 6, and combined leverage is 24. If…

CA Intermediate · Financial Management and Strategic Management · MTP · May 2025
A company operates at a production level of 1,000 units. The contribution is 60 per unit, operating leverage is 6, and combined leverage is 24. If tax rate is 30%, what would be its earnings after tax?
(A) ₹ 1,600
(B) ₹ 1,750
(C) ₹ 1,500
(D) ₹ 1,230

Suggested Answer and Working Notes:

Correct Answer: Option (B)

₹ 1,750

Topics: Part-A: Financial Management

Open in Interactive Practice Hub · Full Practice Hub · Chapter Weightage · More in this subject

Related Questions in this Topic