If Total Fixed Costs Are $420,000, Contribution Margin Per Unit

question 7

Multiple Choice

If total fixed costs are $420,000, contribution margin per unit is $6.75, the tax rate is 40 percent, and the number of units to be sold is 130,000, then the after-tax net income will be

• A) $457,500.
• B) $877,500.
• C) $420,000.
• D) $274,500.

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