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If before-tax profit is $35,000 and operating leverage is 1.50 at the end of the most recent period, a 20% increase in sale will increase

  1. If before-tax profit is $35,000 and operating leverage is 1.50 at the end of the most recent period, a 20% increase in sale will increase net income by what percent and what dollar amount?

    A.

    20% or $7,000

    B.

    30% or $10,500

    C.

    15% or $5,250

    D.

    40% or $14,000

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