Shelton Company Below Is an Income Statement for Shelton Company

question 88

Multiple Choice

Shelton Company Below is an income statement for Shelton Company:
$\begin{array}{ll}\text { Sales } & \$ 600,000 \\\text { Variable costs } & \underline{(150,000) } \\\text { Contribution margin } & \$ 450,000 \\\text { Fixed costs } & \underline{(300,000) } \\\text { Profit before taxes } & \underline{\$ 150,000}\end{array}$ Refer to Shelton Company.Assuming that the fixed costs are expected to remain at $300,000 for the coming year and the sales price per unit and variable costs per unit are also expected to remain constant,how much profit before taxes will be produced if the company anticipates sales for the coming year rising to 125 percent of the current year's level?

• A)$112,500
• B)$187,500
• C)$262,500
• D)$300,000

---

Definitions:

High Productivity

The state of achieving a high level of output or work accomplished in relation to the time or resources used.

Teamwork

Cooperative effort by a group of individuals working together towards a common goal.

Quiet Time

Periods of calmness or silence used for relaxation, meditation, or reflection without any form of disturbance.

Analytical Reports

Documents that provide detailed analyses and interpretations of data or situations to support informed decisions and strategies.