(c) The following are extracts from the income statement of ABC Ltd. K 72,000 40,000 32,000...

 

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(c) The following are extracts from the income statement of ABC Ltd. K 72,000 40,000 32,000 20,000 12,000 3,000 9,000 3,000 6,000 Sales Variable costs Contribution Fixed cost Operating profit Interest Profit before tax Taxes Net profit What is the total leverage effect for ABC? (6 marks) (Total: 25 marks) (c) The following are extracts from the income statement of ABC Ltd. K 72,000 40,000 32,000 20,000 12,000 3,000 9,000 3,000 6,000 Sales Variable costs Contribution Fixed cost Operating profit Interest Profit before tax Taxes Net profit What is the total leverage effect for ABC? (6 marks) (Total: 25 marks)

Answer rating: 100% (QA)

To calculate the total leverage effect for ABC Ltd we need to consider both the operat... View the full answer