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A corporation reports sales of $3,000,000, variable costs of $1,000,000, fixed operating costs of $750,000, and interest expense of $250,000. The corporation's EBIT is $2,250,000

A corporation reports sales of $3,000,000, variable costs of $1,000,000, fixed operating costs of $750,000, and interest expense of $250,000. The corporation's EBIT is $2,250,000 and its marginal tax rate is 30%. If the corporation is able to increase its sales by 25%, then Answer a. its EBIT will increase by 25% and its EPS will increase by 25%. b. its EBIT will increase by more than 25% and its EPS will increase by less than 25%. c. its EBIT will increase by more than 25% and its EPS will increase by more than the percentage increase in EBIT. d. its EBIT and EPS will both increase, but less than 25% due to fixed costs and taxes

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