Question: Quibble Corp. has e timated the following income statement for its last fiscal year. If the firm's operating leverage is 1.9, what is the firm's
Quibble Corp. has e timated the following income statement for its last fiscal year. If the firm's operating leverage is 1.9, what is the firm's expected change in EBIT if the firm assumes that sales will increase by 10%. Sales Variable costs Fixed costs EBIT Interest expense Earnings before taxes Taxes (25%) Net income $30,000,000 9,000,000 13,500,000 7,500,000 1,350,000 6,150,000 1,537,500 $4,612,500 Select one: O a. 19% O b. 190% c. 10% O d. Cannot be estimated based on the given data
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