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Maxvill Motors has annual sales of $14,700. Its variable costs equal 50% of its sales and its fixed costs equal $1,000. If the company's sales

Maxvill Motors has annual sales of $14,700. Its variable costs equal 50% of its sales and its fixed costs equal $1,000. If the company's sales increase 10%, what will be the percentage increase in the company's earnings before interest and taxes (EBIT)? Do not round intermediate calculations.

a. 13.09%

b. 11.57%

c. 10.37%

d. 10.00%

e. 9.09%

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