Question: Solve the problem using an easy to understand approach OBJECTIVE TEST QUESTIONS : SECTION 1 5 Sebastian Co has just reported the following statement of

Solve the problem using an easy to understand approach

OBJECTIVE TEST QUESTIONS : SECTION 1 5 Sebastian Co has just reported the following statement of profit or loss: Revenue $ million 23.6 Operating costs (8.6) Operating profit 15.0 Interest (10% on bank borrowings) (3.4) Profit before tax 11.6 Tax (25%) (2.9) Earnings 8.7 In the coming year, selling prices are expected to rise by 10% and the tax rate is expected to be 28%. What will be the percentage movement in earnings, assuming everything else remains the same? A 23.5% decrease B 7.0% increase C 13.9% increase D 16.1% increase

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