Kelvin Co Produces and Sells Socks

question 61

Multiple Choice

Kelvin Co. produces and sells socks. Variable costs are budgeted at $4 per pair, and fixed costs for the year are expected to total $90,000. The selling price is expected to be $6 per pair.
The sales dollars required to make an after-tax profit (πA) for Kelvin Co. of $15,000, given an income tax rate of 40%, are calculated to be:

• A) $336,000.
• B) $339,000.
• C) $342,000.
• D) $360,000.
• E) $345,000.

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Definitions:

Dominant Partner

In a relationship, the person who tends to take the lead, make decisions, and influence or control the dynamics between the partners.

Fixed Role Therapy

A psychotherapeutic technique in which the client acts out constructs appropriate for a fictitious person. This shows the client how the new constructs can be more effective than the old ones he or she has been using.

Existing Constructs

Pre-established concepts or frameworks used to understand or interpret various phenomena.

Anticipating Events

The process of predicting or expecting future occurrences based on current or past information.