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Below are income statements that apply to three companies: A, B, and C: A Co. B Co. C Co. Sales $100 $100 $100 Variable costs

Below are income statements that apply to three companies: A, B, and C:

A Co.

B Co.

C Co.

Sales

$100

$100

$100

Variable costs

(10)

(20)

(30)

Contribution margin

$ 90

$ 80

$ 70

Fixed costs

(30)

(20)

(10)

Profit before taxes

$ 60

$ 60

$ 60

33. Within the relevant range, if sales go up by $2 for each firm, which company will experience the greatest increase in profit?

a.

A Company

b.

B Company

c.

C Company

d.

all will experience and equal increase

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