If Targeted After-Tax Net Income Is $27,000 with a 40

question 82

Multiple Choice

If targeted after-tax net income is $27,000 with a 40 percent tax rate, contribution margin per unit is $0.80, and total fixed costs are $148,000, then the number of units that must be sold is

• A) 218,750.
• B) 241,250.
• C) 160,833.
• D) 167,250.

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Definitions:

Self-Serving Bias

The common human tendency to attribute positive events to their own character but attribute negative events to external factors.

Personal Experience

An individual’s direct observation or participation in events, forming the basis for knowledge, attitudes, or beliefs.

Inherited

The transfer of physical, genetic, or characteristic traits from parents to offspring through genes.

Innate

Qualities, abilities, or knowledge that are inborn or present naturally rather than acquired.