Prysor Co (June 2022)

It is because for every $ that the revenue increases, the profit before tax will increase by the same amount as the revenue increases.

Hello, in this question, in year 1 there is a tax loss off $12.2m, but there is no mention as to whether the loss can be set off against other operations, as it is a multinational. and if we do set off the loss, tax benefit will be for the additional tax of 10% or 30%, or should we set off against future profits from subsidiary's operations only?

I don’t know how you are arriving at your tax loss. Have you checked your answer against the printed answer?

Ok, its breakeven. Got it. But if there was a loss, examiner will mention in scenario how to adjust it right? Thanks :)

Yes, that is correct :-)