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Maxvill Motors Has Annual Sales of $15,000

Question 65

Multiple Choice

Maxvill Motors has annual sales of $15,000. Its variable costs equal 60% of its sales and its fixed costs equal $1,000. If the company's sales increase 10%, what will be the percentage increase in the company's earnings before interest and taxes (EBIT) ?


A) 13.89%
B) 14.59%
C) 13.23%
D) 12.60%
E) 12.00%

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