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Category > Business & Finance Posted 25 May 2017 My Price 8.00

Bell Brothers has $3,000,000 in sales

Bell Brothers has $3,000,000 in sales. Fixed costs are estimated to be $100,000 and variable costs are equal to 50% of sales. The company has $1,000,000 in debt outstanding at a before-tax cost of 10%. If Bell Brothers' sales were to increase by 20%, how much of a percentage increase would you expect in the company's net income?

 

a. 19.79%  
b. 18.80%  
c. 21.92%  
d. 23.08%  
e. 20.83%

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Status NEW Posted 25 May 2017 06:05 PM My Price 8.00

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