A Bristal Boats,Inc

question 127

Multiple Choice

A Bristal 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%,then

• A)its EBIT will increase by 25% and its EPS will increase by 25%.
• B)its EBIT will increase by more than 25% and its EPS will increase by less than 25%.
• C)its EBIT and EPS will both increase,but less than 25% due to fixed costs and taxes.
• D)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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Definitions:

Corporate Social Responsibility

A business model where companies integrate social and environmental concerns in their operations and interactions with stakeholders.

Good Citizenship

Behaviors and actions that exemplify responsibility, contribution, and respect towards society and its members.

Mexican Workers

Individuals from Mexico who are engaged in employment, either within Mexico or abroad, encompassing a wide range of industries and skill levels.

Human Resources Manager

A professional responsible for overseeing the recruitment, training, and welfare of the company's employees, and managing aspects related to employment law and organizational policies.