Maxvill Motors Has Annual Sales of $15,000

question 65

Multiple Choice

Maxvill Motors has annual sales of $15,000. 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) 13.89%
• B) 14.59%
• C) 13.23%
• D) 12.60%
• E) 12.00%

---

Definitions:

Dictyostelium Discoideum

A species of soil-living amoeba that is a model organism in molecular biology and genetics.

Streptococcus Mutans

A species of bacteria that is a major contributor to tooth decay and cavities due to its ability to produce acid from sugars.

Cyanobacteria

Photosynthetic bacteria that produce oxygen as a byproduct of photosynthesis, found in various aquatic environments and historically significant for oxygenating the Earth's atmosphere.

Atmospheric Oxygen

The oxygen that is part of Earth's atmosphere, essential for the respiration of most living organisms and a product of photosynthesis.