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Accounting

Problem:

A project has fixed costs of $1.000 per year, depreciation charges of $500 a year, revenue of $6,000 a year, and variable costs equal to two-thirds of revenues.

Required:

Question: If sales increase by 10%, what will be the increase in pre-tax profits?

Note: Please explain comprehensively and give step by step solution.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91169840

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