When Carter,Inc

question 114

Multiple Choice

When Carter,Inc.sells 48,000 units,its total variable cost is $115,200.What is its total variable cost when it sells 54,000 units?

• A)$100,800
• B)$115,200
• C)$129,600
• D)$134,800

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Definitions:

FICA Withholding

Taxes deducted from employees’ paychecks for Social Security and Medicare, based on the Federal Insurance Contributions Act.

Federal Income Tax

The tax levied by the IRS on the annual earnings of individuals, corporations, trusts, and other legal entities.

FUTA Taxes

Federal Unemployment Tax Act (FUTA) taxes are federal employer taxes that contribute to state workforce agencies to fund unemployment benefits.

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The total amount of tax owed by an individual, corporation, or other entity to a taxing authority.