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:

Shame and Doubt

A stage in Erik Erikson's theory of psychosocial development, occurring in early childhood, where kids learn to develop autonomy and self-confidence or experience shame and doubt about their abilities.

Identity Confusion

A state in which an individual is uncertain or conflicted about personal identity issues, such as one's role in society or one's values and beliefs.

Psychosocial Stages

A theory proposed by Erik Erikson that describes eight stages through which a healthily developing human should pass from infancy to late adulthood, each marked by a psychological crisis.

Development

The process of growth or progression through successive phases, typically used in the context of physical, psychological, or social changes over time.