Question: Assume current sales are 10,000 units, contribution margin per unit is $2.50 and current margin of safety is 20%. If sales increase by 5% from

Assume current sales are 10,000 units, contribution margin per unit is $2.50 and current margin of safety is 20%. If sales increase by 5% from the current level, what is the percent change in profits before taxes?

A. 40 percent

B. 25 percent

C. 250 percent

D. 12.5 percent

E. 50 percent

Please show calculations

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