Marie Manufacturing Reported Net Income of $42,120 and Has a 35

question 132

Multiple Choice

Marie Manufacturing reported net income of $42,120 and has a 35% tax rate.Marie manufactures a product which sells for $20 per unit and whose variable costs are 62.5% of sales.If Marie sold 23,040 units, what were the company's operating income and fixed costs (round your answer if necessary) ?

• A)$64,800; $108,000
• B)$120,344; $167,656
• C)$172,800; $52,456
• D)$214,920; $94,576

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Definitions:

Vertical Merger

A business combination of companies that operate along the same supply chain but at different stages of production.

Horizontal Merger

The combination of two or more firms competing in the same industry and at the same stage of production, aimed at increasing market share.

Conglomerate Merger

A merger between companies that operate in completely different industries.

Diagonal Merger

A merger between companies in unrelated business activities, potentially for strategic integration or diversification.