Edmonco Company produced and sold 45,000 units of a single product last year, with the following results: Sales Revenue$1,350,000 Manufacturing costs: Variable 585,000 Fixed 270,000 Selling costs: Variable 40,500 Fixed 54,000 Administrative costs: Variable 184,500 Fixed 108,000 If Edmonco's sales revenues increase 15%, what will be the percentage increase in income before income taxes?
A. 75%.
B. 60%.
C. 45%.
D. 15%.
E. None of the other answers is correct.
Answer: A
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