Flingers Inc Upper Management Plans to Cut Cost of Goods Sold by for FY

Flingers Inc. reveals the following information in their annual report for FY 2017 $$\begin{array}{l}\text { Earnings and Expenses }\\\begin{array} { | l | c | } \hline \text { Sales } & \$ 10,000,000 \\\hline \text { Cost of goods sold } & \$ 5,000,000 \\\hline \text { Pretaxearnings } & \$ 500,000 \\\hline & \\\hline \text { Selected Balance Sheet Items } & \\\hline \text { Merchandise inventory } & \$ 80,000 \\\hline \text { Total assets } & \$ 2,000,000 \\\hline\end{array}\end{array}$$ Upper management plans to cut cost of goods sold by 5% for the coming year but retain the same sales. What will Flingers' profit leverage effect be for 2018

A) $13.33
B) $14.71
C) $17.50
D) $18.50