Answer the Following Questions Using the Information Below:
Assume the Following

question 137

Multiple Choice

Answer the following questions using the information below:
Assume the following cost information for Murray River Company:
$\begin{array}{lr}\text { Selling price } & \$ 240 \text { per unit } \\\text { Variable costs } & \$ 140 \text { per unit } \\\text { Total fixed costs } & \$ 140000 \\\text { Tax rate } & 40 \%\end{array}$
-What minimum volume of sales dollars is required to earn an after tax net profit of $30 000?

• A)$330 000
• B)$165 000
• C)$456 000
• D)$465 000

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Definitions:

Surplus

A situation where the quantity of a good or service supplied exceeds the quantity demanded at the current price.

Equilibrium Quantity

The quantity of goods or services that is supplied and demanded at the equilibrium price, where the quantity supplied equals the quantity demanded.

Equilibrium Price

The market price at which the supply of an item matches its demand, leading to a stable market where there is no surplus or shortage.

Adam Smith

An 18th-century Scottish economist and philosopher, often considered the father of modern economics, best known for his work "The Wealth of Nations" which promotes the idea of free markets and the invisible hand guiding economic activity.