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:

Acute Mania

A state of heightened mood, energy, and activity levels, often associated with bipolar disorder, that can significantly impair judgment and behavior.

Bipolar Disorder

A mental disorder characterized by periods of depression and periods of elevated mood or mania.

Power Struggle

A conflict or competition where individuals or groups vie for control or dominance.