Assume Total Fixed Costs of $160,000,variable Costs Per Unit of $6

question 31

Multiple Choice

Assume total fixed costs of $160,000,variable costs per unit of $6, and contribution margin per units of $4. What are the sales dollars required to earn a target net income of $50,000 assuming a tax rate of 20%?

• A)$350,000
• B)$556,250
• C)$525,000
• D)$500,000

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Definitions:

Operating Profit

The profit earned from a firm's normal core business operations.

Assistant's Salary

refers to the compensation provided to an assistant, which can vary depending on the field of work, job responsibilities, and experience level.

Accounting Profit

The financial gain calculated by subtracting total expenses from total revenues, according to standard accounting practices.

Own Capital

Resources or funds that an individual or company owns outright without any debt obligations.