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:

Consolidated Financial Statements

Financial statements that aggregate the financial position and results of operations of a parent company and its subsidiaries.

Voting Common Stock

Shares that give the shareholder the right to vote on corporate matters such as the election of the board of directors.

Less Than 100%

A phrase often used to indicate a partial interest or ownership in an entity, asset, or venture that does not constitute a total or whole interest.

Amortization Schedule

A table detailing each periodic payment on a loan (often a mortgage), distinguishing how much is interest versus principal reduction.