A company had the following income statement for the previous
reporting period (earnings before interest and taxes):
Revenue $26,000,000
COGS $20,932409
SG&A $4,503,125
EBIT $564,466
The company is not at its maximum production and wants to make some additional sales this
quarter to some new customers. Assuming that indirect costs have already been covered, choose
the largest (temporary!) discount that could be offered without losing money.
a) 0%
b) 10%
c) 15%
d) 20%
e) 25%