Andrew Company Has the Following Information If the Tax Rate Decreases to 30%, _ Fewer Units

question 183

Multiple Choice

Andrew Company has the following information: $\begin{array}{ll}\text { Income tax rate } & 40 \% \\\text { Selling price per unit } & \$ 7.50 \\\text { Variable cost per unit } & \$ 2.50 \\\text { Total fixed costs } & \$ 100,000\end{array}$ If the tax rate decreases to 30%, _ fewer units can be sold to retain the same net income of $42,000.

• A) 1,000 units
• B) 32,000 units
• C) 34,000 units
• D) 2,000 units

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Definitions:

Absolute Advantage

The ability of an entity to produce more of a good or service with the same amount of resources or the ability to produce the same amount with fewer resources than competitors.

Unauthorized Practice

Engaging in legal practice or providing legal advice without the necessary licensing or accreditation.

Attorney-Client Relationships

A professional bond between a lawyer and their client, characterized by confidentiality, trust, and a duty of representation.

Legal Opinions

Written statements by a legal expert or body, often an attorney or a court, expressing the legal analysis and judgment on a given legal issue or case.