Assume the Following Cost Behaviour Data for Portrait Company -What Volume of Sales Dollars Is Required to Earn a

question 87

Multiple Choice

Assume the following cost behaviour data for Portrait Company: $$\begin{array} { l l l } \text { Sales price } & \$ 18.00 & \text { per unit } \\\text { Variable costs } & \$ 13.50 & \text { per unit } \\\text { Fixed costs } & \$ 22,500 & \\\text { Tax rate } & 40\% &\end{array}$$
-What volume of sales dollars is required to earn a before-tax income of $27,000?

• A)$90,000
• B)$180,000
• C)$198,000
• D)$270,000

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Definitions:

Experimental Group

A group of subjects in an experiment who are exposed to the independent variable to assess its effect, compared to a control group.

Smallest Unit

The fundamental, indivisible particle or component of a system, often referring to cells in biology or atoms in chemistry.

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The condition that distinguishes animals and plants from inorganic matter, including the capacity for growth, reproduction, functional activity, and continual change preceding death.

Circulatory System

The body system that circulates blood throughout the body, delivers nutrients and oxygen to cells, and removes waste products, encompassing the heart, blood vessels, and blood.