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%

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Definitions:

TC

Therapeutic Community, a treatment model focusing on the community or social environment as a method for promoting psychological and behavioral change.

Developmental

Pertaining to the process of growth and change over time, especially in the context of human growth, behavior, and psychology.

Psychological

Relating to the mind or mental processes, often involving emotional or behavioral characteristics of individuals or groups.

IOP

Intensive Outpatient Program, a type of treatment program designed to offer focused therapy and support for individuals with mental health or substance abuse issues while they continue to live in their community.