Answer:
75%
Explanation:
The computation of the percentage increase in income before income taxes is shown below:
Particulars Current $ Increase at 15% Revised $
Sales revenue 1350000 202500 1552500
Less: Variable cost
Variable manufacturing 585000 87750 672750
Variable selling 40500 6075 46575
variable Admin 184500 27675 212175
Total variable cost 810000 121500 931500
Contribution 540000 81000 621000
Less: Fixed cost
Manufacturing 270000 0 270000
Selling 54000 0 54000
Admin 108000 0 108000
Net income 108000 81000 189000
Now percentage increase in income is
= (81000 ÷ 108000)
= 75%