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

question 15

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Edmonco Company produced and sold 45,000 units of a single product last year, with the following results:  Sales revenue $1,350,000 Manufacturing costs:  Variable 585,000 Fixed 270,000 Selling costs:  Variable 40,500 Fixed 54,000 Administrative costs:  Variable 184,500 Fixed 108,000\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?

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Definitions:

Enforceable

A term used to describe a legal agreement or rule that can be upheld or compelled by law.

Oral Contract

An agreement made through spoken communication between parties, rather than in writing, yet is legally binding.

Project

A project is a planned set of interrelated tasks to be executed over a fixed period and within certain cost and other limitations.

Eighteen Months

A time period equal to one and a half years.

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