A company operates at a production level of 5,000 units. The contribution is 60 per unit, operating leverage is 6, combined leverage is 24. If tax…

CA Intermediate · Financial Management and Strategic Management · MTP · January 2026
A company operates at a production level of 5,000 units. The contribution is 60 per unit, operating leverage is 6, combined leverage is 24. If tax rate is 30%, what would be its earnings after tax?
(A) ₹ 8,750
(B) ₹ 30,000
(C) ₹ 9,500
(D) ₹ 10,000

Suggested Answer and Working Notes:

Correct Answer: Option (A)

₹ 8,750

Topics: Part-A: Financial Management

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