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:

Purchase Accounting Method

An accounting approach used in mergers and acquisitions, where the assets and liabilities of the acquired company are added to the acquirer's balance sheet at their current fair market values.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time.

Tender Offer

A tender offer is a proposal made publicly by an investor or company to purchase some or all of shareholders' shares in a corporation at a specified price.

Consolidation

The process of combining multiple companies or financial statements, often to present a unified set of financials or to merge businesses.