You Have Been Provided with the Following Information -
If Sales Increase by 10%, What Level of Fixed

Multiple Choice

You have been provided with the following information:
$$\begin{array} { l r } & { \text { Total } }\\\text { Sales } & \$ 90,000 \\\text { Less Variable expenses } & 54,000 \\\text { Contribution margin } & 36,000 \\\text { Less fixed expenses } & 24,000 \\\text { Operating profit } & \$ 12,000 \\\end{array}$$

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If sales increase by 10%, what level of fixed costs will yield a 20% increase in profits?

A) $14,400.
B) $19,200.
C) $25,200.
D) $26,400.