Assume the Following Cost Information for Zachary Company Must Be Sold to Earn an After- Tax Net Income

question 31

Multiple Choice

Assume the following cost information for Zachary Company: $\begin{array}{ll}\text { Selling price per unit } & \$ 144 \\\text { Variable costs per unit } & \$ 80 \\\text { Total fixed costs } & \$ 80,000 \\\text { Tax rate } & 40 \%\end{array}$ must be sold to earn an after- tax net income of $40,800.

• A) 3,700 units
• B) 1,594 units
• C) 1,063 units
• D) 2,313 units

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Definitions:

Holder

An individual or entity that legally possesses a negotiable instrument, like a check or promissory note, and has the right to enforce it.

FTC

The Federal Trade Commission, a U.S. federal agency responsible for consumer protection and the prevention of anti-competitive business practices.

Negotiable Installment Notes

Debt instruments that promise repayments in a series of payments and are transferable to others.

Finance Companies

Businesses that provide loans to individuals or corporations, excluding banks and other traditional financial institutions.