Multiple Choice
Maxvill Motors has annual sales of $14,200.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) 13.47%
B) 12.14%
C) 11.29%
D) 12.62%
E) 11.65%
Correct Answer:
Verified
Correct Answer:
Verified
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