Roulanta Ltd. invests in a project that has the following annual information. Fixed costs are $2000, depreciation is $1000, sales revenue is $11,950 and variable costs are 68.5 percent of revenues.If sales increase by 5 percent, what will be the percentage increase in pretax profits?

a. 25 percent

b. 5 percent

c. 10 percent

d. 15 percent

e. 20 percent