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

question 170

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

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Definitions:

Sample Information

Specific data or details derived from a subset of a larger population used for statistical analysis or inference.

Maintenance Company

A business specializing in providing upkeep, repair, and care services for buildings, equipment, or machinery.

Expected Payoff

The average outcome or result anticipated from a given action, decision, or investment, after considering all possible outcomes and their probabilities.

Graphic Design

The art of combining text and pictures in advertisements, magazines, books, and more.