Solved: Company earnings before interest and taxes, Finance Basics

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Company earnings before interest and taxes

Question:

A company has annual sales of $14,000. Its variable costs equal 60% of its sales, 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)?

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Finance Basics: Company earnings before interest and taxes

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Finance Basics: Company earnings before interest and taxes

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