The Troy Company Has the Following Information Available What Is the After-Tax Net Income?
A) $245,000
B) $280,000

question 66

Multiple Choice

The Troy Company has the following information available:
$\begin{array}{ll}\text { Total fixed costs }&\$400,000\\\text { Expected sales (units) } & 100,000 \\\text { Contribution margin per unit } & \$ 7.50 \\\text { Taxrate } & 30 \%\end{array}$
What is the after-tax net income?

• A) $245,000
• B) $280,000
• C) $350,000
• D) $400,000

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Definitions:

Fixed Cost

Costs that do not change with the level of output produced, such as rent, salaries, and insurance.

Composite Units

A measure used in cost accounting for aggregating the cost of similar items or processes into a single figure.

Fixed Costs

Financial obligations like rent, salaries, and insurance premiums that do not fluctuate with changes in production or sales levels.

Sales Data

Information and statistics related to the sale of goods and services, used by businesses to analyze performance, forecast trends, and make strategic decisions.