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1: P&L Ratios: A company has Sales of 1,000,000, fixed costs of 200,000 and Operating...

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1: P&L Ratios: A company has Sales of 1,000,000, fixed costs of 200,000 and Operating Leverage of 2. If Sales were to increase by 25%, the rate of variable costs (or costs of goods sold") as a percentage of sales remains constant, and fixed costs remain as 200,000, what is the increase in Net Profit Before Interest and Tax? a) 50,000 increase b) 100,000 increase c) 200,000 increase d) 250,000 increase

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