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In year 2020, E Corp has an operating leverage of 1.25, margin of safety of P 100,000 and Contribution margin ratio of 40%. If sales

In year 2020, E Corp has an operating leverage of 1.25, margin of safety of P 100,000 and Contribution margin ratio of 40%. If sales increased by 10% and fixed cost is P 10,000, what will be the net income in year 2021?

*P = Philippine Peso

A. 48,000

B. 45,000

C. 44,000

D. None of the above

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