If Selling Price Per Unit Is $40,variable Costs Per Unit

question 97

Multiple Choice

If selling price per unit is $40,variable costs per unit are $25,total fixed costs are $20,000,the tax rate is 30%,and the company sells 5,000 units,net income is ________.

• A) $32,158
• B) $26,548
• C) $28,500
• D) $38,500

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Definitions:

Bimetallic

Pertaining to an object made of two different metals bonded together, often used in temperature sensing applications.

Motor Starter

An electrical device that controls the use of electrical power to equipment, usually an electric motor, by initiating the stop/start command.

Magnetic Contractor

A specialized type of relay used in high power applications to switch on and off electric currents.

Electronic Motor Overload Units

Devices that protect motors from drawing too much current, potentially causing overheating or failure.