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Business, 19.08.2019 22:20 5924000264

Abristal boats, inc. reports sales of $4,000,000, variable costs of $500,000, fixed operating costs of $1,250,000, and interest expense of $350,000. the corporation's ebit is $3,250,000 and its marginal tax rate is 30%. if the corporation is able to increase its sales by 25%, thena. its ebit will increase by more than 25% and its eps will increase by less than 25%.b. its ebit and eps will both increase, but less than 25% due to fixed costs and taxes. c. its ebit will increase by 25% and its eps will increase by 25%. incorrectd. its ebit will increase by more than 25% and its eps will increase by more than the percentage increase in ebit.

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