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Edmonco Company produced and sold 45,000 units of a single product last year, with the following results: sales revenue 1,350,000 manufacturing cost: variable 585,000 fixed

Edmonco Company produced and sold 45,000 units of a single product last year, with the following results:

sales revenue 1,350,000

manufacturing cost:

variable 585,000

fixed 270,000

selling:

Variable 40,500

Fixed 54,000

Admin:

Variable 184,500

Fixed 108,000

If Edmonco's sales revenues increase 15%, what will be the percentage increase in income before income taxes?

15%.

45%.

60%.

75%.

None of the other answers is correct.

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