Framing House, Inc

question 46

Multiple Choice

Framing House, Inc. produces and sells picture frames. Variable costs are expected to be $17 per frame; fixed costs for the year are expected to total $130,000. The budgeted selling price is $25 per frame.

The sales dollars required by Framing House to make an after-tax profit (πA) of $10,000, given an income tax rate, t, of 20 percent, would be (round intermediate calculation(s) to nearest whole number) :

• A) $436,500
• B) $439,000
• C) $442,750
• D) $460,000
• E) $445,325

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Definitions:

Guest-Country National

An individual who is a citizen of the country in which an international company operates, but the company is based in another country.

Third Country

A nation that is neither the home country of the company nor the host country where it operates; it's an unrelated, third-party country.

Parent Country

The country in which a multinational company's headquarters is located.

Long-Term Orientation

A cultural or organizational perspective that values long-range planning, perseverance, and savings for future betterment.