Edmonco Company Produced and Sold 45,000 Units of a Single

question 15

Multiple Choice

Edmonco Company produced and sold 45,000 units of a single product last year, with the following results: $\begin{array}{lr}\text { Sales revenue } & \$ 1,350,000 \\\text { Manufacturing costs: } & \\\quad \text { Variable } & 585,000 \\\text { Fixed } & 270,000 \\\text { Selling costs: } & \\\quad \text { Variable } & 40,500 \\\quad \text { Fixed } & 54,000 \\\text { Administrative costs: } & \\\quad \text { Variable } & 184,500 \\\text { Fixed } & 108,000\end{array}$ If Edmonco's sales revenues increase 15%, what will be the percentage increase in income before income taxes?

• A) 15%.
• B) 45%.
• C) 60%.
• D) 75%.
• E) None of the other answers is correct.

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Definitions:

Wrongful Civil Proceedings

The act of initiating or conducting civil legal actions without proper grounds, often causing harm or inconvenience to the defendant.

Liability

A legal responsibility or obligation, often financially, that arises from actions or claims against an individual or entity.

Emotional Distress

A legal term denoting psychological suffering or anguish inflicted upon a person due to another's wrongful conduct.

Invasion of Privacy

The act of intruding into someone's personal life without consent, leading to violation of their privacy rights.