If Variable Costs Per Unit Are 70% of Sales Fixed

question 33

True/False

If variable costs per unit are 70% of sales fixed costs are $290000 and target net income is $70000 required sales are $1200000.

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Definitions:

Double Taxation

The imposition of tax on the same income, asset, or financial transaction at two different levels of government, for example, corporate profit followed by personal income tax on dividends.

Perpetual Existence

A feature of corporations allowing them to continue indefinitely, beyond the lives of their owners or members.

Articles Of Incorporation

Document filed with a state government to legally document the creation of a corporation, outlining key details such as name, purpose, and structure.

Incorporation Document

Official papers filed with a state to legally document the creation of a corporation.