Question: 2 Please calculate the affect on profitability between a 5% cost reduction in variable costs versus a 5 sales increase in the following scenario:

2 Please calculate the affect on profitability between a 5% cost reduction in variable costs versus a 5 sales increase in the following scenario: Sales COGS (variable parts) $100,000 $40,000 Admin expenses (fixed parts) $25,000 Show all work. Please comment on this.

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