Which of the following scenarios accurately reflects the meaning of the profit leverage effect?

When operating with a 7.6% profit margin, your cost of goods sold will be $10,000 as long as your sales exceed $10,000.

If your profit margin is 7.6%, every $10,000 saved in purchasing lowers your COGS sold by $760.

With a 7.6% profit margin, every additional $10,000 in sales increases your pre-tax profits by $10,000, while every $10,000 saved in purchasing increases your pre-tax profits by just $760.

With a 7.6% profit margin, decreasing your cost of goods sold (COGS) by $10,000 increases your pre-tax profits by $10,000, but increasing your sales by $10,000 only increases your pre-tax profits by $760.