medium · Principles of Finance cost-of-capital-structure

A manufacturing firm has revenue of $50,000,000, variable costs of $20,000,000, and fixed costs of $15,000,000.

If revenue increases by 10%, what is the resulting percentage increase in operating income (EBIT)?

  1. 10%
  2. 20%
  3. 30%
  4. 15%

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