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Maxvill Motors Has Annual Sales of $15,000

Question 18

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

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