Bealing Company has the following operating profit:
a. Bealing could increase revenues by 10% by reducing sales discounts by 10%.There will be no changes in variable or fixed costs.What would be the percentage increase in operating profits?
b. Refer to the original information in this problem.Suppose Bealing's sales people discounted sales another 2% with no change in variable or fixed costs.What is the change in operating profits?
Correct Answer:
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