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ABC Corp. invests in a project with the following annual information: Fixed costs of $3,790, a depreciation of $1,990 and sales revenue of $23,900. Variable

ABC Corp. invests in a project with the following annual information: Fixed costs of $3,790, a depreciation of $1,990 and sales revenue of $23,900. Variable costs are 55.30% of sales revenue. If sales revenue increase by 8.00%, by what percentage will pre-tax profits increase?

a. 17.43%

b. 9.83%

c. 12.40%

d. 26.15%

e. 6.55%

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