Abristal boats, inc. reports sales of $4,000,000, variable costs of $500,000, fixed operating costs of $1,250,000, and interest expense of $350,000. the corporation's ebit is $3,250,000 and its marginal tax rate is 30%. if the corporation is able to increase its sales by 25%, thena. its ebit will increase by more than 25% and its eps will increase by less than 25%.b. its ebit and eps will both increase, but less than 25% due to fixed costs and taxes. c. its ebit will increase by 25% and its eps will increase by 25%. incorrectd. its ebit will increase by more than 25% and its eps will increase by more than the percentage increase in ebit.

The business cycle is the periodic but irregular up-and-down movement in economic activity, measured by fluctuations in real gross domestic product (gdp) and other macroeconomic variables. a business cycle is typically characterized by four phases—recession, recovery, growth, and decline—that repeat themselves over time. economists note, however, that complete business cycles vary in length. the duration of business cycles can be anywhere from about two to twelve years, with most cycles averaging six years in length. some business analysts use the business cycle model and terminology to study and explain fluctuations in business inventory and other individual elements of corporate operations. but the term "business cycle" is still primarily associated with larger (industry-wide, regional, national, or even international) business trends.