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_______________ holds that $1 in cost savings increases pretax profits by $1, while a $1 increase in sales increases pretax profits by only $1 multiplied

_______________ holds that $1 in cost savings increases pretax profits by $1, while a $1 increase in sales increases pretax profits by only $1 multiplied by the pretax profit margin.

A.

The profit margin effect

B.

The return on assets effect

C.

The profit leverage effect

D.

The merchandise inventory effect

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