Management Anticipates Fixed Costs of $72,500 and Variable Costs Equal

question 16

Multiple Choice

Management anticipates fixed costs of $72,500 and variable costs equal to 40% of sales. What will pretax income equal if sales are $325,000?

• A) $57,500.
• B) $122,500.
• C) $130,000.
• D) $181,250.
• E) $252,500.

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Definitions:

Hazan and Shaver

Researchers known for their work on attachment theory in adult relationships, proposing that patterns established in childhood influence later relationships.

Insecure

Experiencing uncertainty or lack of confidence, often reflecting concerns about oneself or one's relationships.

Volatile

Characterized by or subject to rapid or unexpected change, especially in relation to emotions or reactions.

Characterized by Warmth

Described or distinguished by a friendly, affectionate, or kindly nature.