If Targeted After?tax Net Income Is $67,500 with a 40

question 159

Multiple Choice

If targeted after?tax net income is $67,500 with a 40% tax rate, contribution margin per unit is $2.00, and total fixed costs are $370,000, then the number of units that must be sold is _____.

• A)160,833 units
• B)167,250 units
• C)218,750 units
• D)241,250 units

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Definitions:

Intuitive Psychology

The natural ability to understand and make predictions about others' thoughts, feelings, and behaviors without extensive formal learning.

Psychological Schemata

Mental structures that organize knowledge and beliefs, influencing perception, memory, and understanding.

Self-Schemes

Cognitive structures that organize knowledge, memories, and views about oneself.

Theory of Mind

The ability to attribute mental states—beliefs, intents, desires, emotions, knowledge—to oneself and others and to understand that others have beliefs and perspectives different from one's own.