Koninklijke BolsWessanen NV has fixed costs of 300 000 and a variable-cost percentage of 80%. The company

Question:

Koninklijke BolsWessanen NV has fixed costs of €300 000 and a variable-cost percentage of 80%. The company earns net profit of €84 000 in 2008. The income tax rate is 40%.
Required
Calculate
(1) Operating profit
(2)
(3) Total revenues
(4) Breakeven revenues.
Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...