CumChan is undergoing a project that has fixed costs of $2,000 per year, depreciation charges of $1,000 a year of $12,000 a year, and variable costs equal to two-thirds of revenues.If sales increase by 5 percent, what will be the increase in pretax profits?

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The Answer of CumChan is undergoing a project that has fixed costs of $2,000 per year, depreciation charges of $1,000 a year of $12,000 a year, and variable costs equal to two-thirds of revenues.If sales increase by 5 percent, what will be the increase in pretax profits?

CumChan Is Undergoing a Project That Has Fixed Costs of $2,000