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

Describe how equity is affected by profit, loss, and owner contributions.

Understand the recognition criteria for elements of financial statements.

Discuss the costs involved in providing useful financial information and the chapters included in the IASB's Conceptual Framework.

Understand the mechanisms and calculations involved in managing a portfolio's exposure to market movements.

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Definitions:

Managing Finances

The practice of handling monetary resources efficiently, including budgeting, investing, and saving.

Adequate Cash Flow

The level of cash inflow that is sufficient to cover the outflow necessities for a business to operate smoothly and meet its financial obligations.

Home Based

Pertaining to businesses or activities that are operated out of a person's residence, rather than from an external office or commercial establishment.

Small Business Administration

A U.S. government agency designed to support and assist small businesses through funding, training, and advisory services.