Management Anticipates Fixed Costs of $72,500 and Variable Costs Equal

question 16

Multiple Choice

Management anticipates fixed costs of $72,500 and variable costs equal to 40% of sales. What will pretax income equal if sales are $325,000?

• A) $57,500.
• B) $122,500.
• C) $130,000.
• D) $181,250.
• E) $252,500.

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Definitions:

Specific Accounting Principles

Guidelines that govern the accounting process for specific transactions and events, tailored to particular industries or sectors.