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:

Tightness

A cultural dimension reflecting the extent to which societies tolerate deviation from norms and behaviors, with tight societies having strict norms and little tolerance for deviation.

Self-Determination

A theoretical concept referring to individuals' ability to make choices and govern their own lives, emphasizing the importance of autonomy and control in human behavior.

Individualistic Cultures

Societies that emphasize personal goals, autonomy, and individual achievement over group objectives.

Socially Embedded

The concept of individuals or actions being situated within and influenced by a network of social relationships and structures.