Use the Information Below to Answer the Following Question(s)

question 4

Multiple Choice

Use the information below to answer the following question(s) .Brian O'Neil intends to sell his customers a special round-trip airline ticket package.He is able to purchase the package from the airline carrier for $400 each.The airline intends to reimburse Brian for any unsold ticket packages.The round-trip tickets will be sold for $500 each.Brian has a tax rate of 30% on his business income.
-What is the dollar amount of sales required for Brian to earn an after-tax profit of $7,000 if fixed costs are $10,000?

• A)$17,000
• B)$50,000
• C)$70,588
• D)$85,000
• E)$100,000

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Definitions:

Grade B

Refers to a quality or classification of a product, often seen in agricultural products, suggesting it meets specified standards but is below the highest quality.

Nonconformity

A failure to meet agreed standards or specifications, deviating from a norm or standard.

Letter of Credit

A financial instrument issued by a bank guaranteeing a buyer's payment to a seller, subject to certain conditions.

Reimburse

To pay back or compensate someone for expenses they have incurred.