Mildura Pty Ltd produced and sold 45,000 units of a single product last year. Data concerning the year's income statement is as follows:
|
Sales revenue
|
$1,350,000
|
|
Manufacturing costs:
|
|
|
Variable
|
$585,000
|
|
Fixed
|
$270,000
|
|
Selling costs
|
|
|
Variable costs
|
$40,500
|
|
Fixed costs
|
$54,000
|
|
Administrative costs
|
|
|
Variable costs
|
$184,500
|
|
Fixed costs
|
$108,000
|
Assuming sales revenue increases by 15 per cent, what will be the percentage increase in profits before income taxes?