Use the data in the following table to compute the percentage change in EBIT that would occur if sales were to increase by10%.

Sales $500,000

Less Variable cost 200,000

Less Fixed cost 250,000

EBIT 50,000

Less interest 20,000

Profit before tax 30,000

Less tax 12,000

Net Profit 18,000

Answer rating: 100% (QA)

When the sale increases the variable cost will also increase by the same proportion ... View the full answer