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Using the Percent of Sales Method and Assuming That No

Question 44

Multiple Choice

Using the percent of sales method and assuming that no excess capacity exists,a 20% increase in sales will result in


A) a 20% increase in total assets.
B) a 20% increase in total liabilities.
C) a 20% increase in retained earnings.
D) a 20% increase in the company's profit margin.

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