This MCQ relates to sensitivity analysis.
Sales revenue = 2000
Variable costs = (1300)
Contribution = 700
Fixed costs = (450)
Profit = $250
Profit is before-tax where the corporation tax is given at 20%.
My question is that should we use the profit-before tax of $250 OR profit-after tax of $200 for the calculation of sensitivity analysis in paper PM?
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sensitivity analysis
Before tax.
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