Roulanta Ltd. invests in a project that has the following annual information. Fixed costs are $2000, depreciation is $1000, sales revenue is $11,950 and variable costs are 68.5 percent of revenues.If sales increase by 5 percent, what will be the percentage increase in pretax profits?
a. 25 percent
b. 5 percent
c. 10 percent
d. 15 percent
e. 20 percent
Answer= a. 25 percent Note:    Existing   Revised Sales   Sales Revenue   11,950.00   12,547.50   Less: Variable Cost   8,185.75   8,595.04   Contribution mar ... See the full answer