If Selling Price Per Unit Is $55, Variable Costs Per

question 60

Multiple Choice

If selling price per unit is $55, variable costs per unit are $25, total fixed costs are $24,000, the tax rate is 35%, and the company sells 7,000 units, net income is ________.

• A) $186,000
• B) $75,250
• C) $136,500
• D) $120,900

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Definitions:

Merger Approval

The official sanction by regulatory authorities allowing two or more companies to consolidate into one entity.

Cash-Out Combinations

Financial strategies or transactions where owners of a business sell their stake in the company, partially or entirely, for cash.

Fair Dealing

A legal doctrine requiring parties to engage in business transactions in a just, equitable, and non-discriminatory manner.

Minority Shareholders

Shareholders who own a smaller portion of a company's shares, compared to majority shareholders, and often have limited influence on company decisions.