Maxvill Motors has annual sales of $14,900. Its variable costs equal 60% 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)?
A. 10.69%
B. 12.02%
C. 14.54%
D. 11.30%
E. 9.37%
Answer: B
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