If Total Fixed Costs Are $350,000, Contribution Margin Per Unit

question 119

Multiple Choice

If total fixed costs are $350,000, contribution margin per unit is $7.50, the tax rate is 30%, and the number of units to be sold is 100,000, then the after- tax net income will be:

• A) $400,000
• B) $280,000
• C) $350,000
• D) $877,500

---

Definitions:

Boss

An individual who is in charge of a worker or organization, possessing the authority and responsibility over decision-making and management within the workplace.

Coercive Power

The ability of an individual or group to compel or control actions of others through the threat of punishment or the implementation of sanctions.

Informational Power

Influence over others derived from the possession or access to valuable information.

Milgram

Refers to Stanley Milgram, a psychologist known for his experiment on obedience, demonstrating how far individuals would go to obey an authority figure.