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

Question 63

Multiple Choice

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?


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

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