The Following Is Allison Corporation's Contribution Format Income Statement for Last

question 34

Multiple Choice

The following is Allison Corporation's contribution format income statement for last month:
$\begin{array}{|l|r|}\hline \text { Sales } & \$ 800,000 \\\hline \text { Less: variable expenses } & \underline{300,000} \\\hline \text { Contribution margin } & 500,000 \\\hline \text { Less: fixed expenses } & \underline{400,000} \\\hline \text { Operating income } & \$ 100,000 \\\hline\end{array}$ The company has no beginning or ending inventories. The company produced and sold 10,000 units last month.


-How many units would the company have to sell to attain after-tax profits of $72,000,assuming it is subject to a 40% income tax rate?

• A) 9,440 units.
• B) 11,600 units.
• C) 10,400 units.
• D) 12,000 units.

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Definitions:

Industrialization

The process by which an economy is transformed from primarily agricultural to one based on the manufacturing of goods, characterized by technological innovation and the development of complex industrial systems.

Gender Equality

The state of equal access to resources and opportunities regardless of gender, and the elimination of discrimination on the basis of gender.

Overpopulation

A situation where the number of people exceeds the carrying capacity of their environment, leading to environmental and social issues.

Gender Inequality

A societal phenomenon where people experience unequal treatment or opportunities due to their gender.