Following data is available for A Ltd. Financial Leverage - 3:1 Interest - ₹2,000 Operating Leverage - 4:1 Variable cost (% to sales) - 66.67% Income Tax Rate - 45% Amount of contribution will be :

CS Executive · Financial and Strategic Management · PYQS · December 2023
Following data is available for A Ltd. Financial Leverage - 3:1 Interest - ₹2,000 Operating Leverage - 4:1 Variable cost (% to sales) - 66.67% Income Tax Rate - 45% Amount of contribution will be :
(A) ₹6,000
(B) ₹12,000
(C) ₹36,000
(D) ₹18,000

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Financial Management

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