Smith Oil Co

question 88

Multiple Choice

Smith Oil Co. expects sales of $1,000,000 and total variable costs of $600,000 for 2016. Total budgeted fixed costs are $200,000. What is the dollar amount of sales necessary to achieve pre-tax profits of $400,000?

• A) $2,000,000
• B) $1,200,000
• C) $1,500,000
• D) $1,000,000

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