Framing House,Inc

question 8

Multiple Choice

Framing House,Inc.produces and sells picture frames.Variable costs are $17 per frame,and fixed costs for the year total $130,000.The selling price is $25 per frame.The sales dollars required to make a before-tax profit of $20,000 are calculated to be:

• A)$445,650.
• B)$468,750.
• C)$476,350.
• D)$406,150.
• E)$412,050.

---

Definitions:

Subsidiary Ledger

A subsidiary ledger is a group of similar accounts whose totals summarize into a single amount shown in the general ledger, aiding detailed financial analysis and tracking.

Fraud Triangle

The fraud triangle is a model that explains the factors that lead individuals to commit fraud: pressure, opportunity, and rationalization.

Financial Pressure

The stress or strain on a company's cash flow or finances, which can impact its operational capabilities and financial stability.

Opportunity

A situation or condition favorable for the attainment of a goal.