Management Anticipates Fixed Costs of $72,500 and Variable Costs Equal

question 16

Multiple Choice

Management anticipates fixed costs of $72,500 and variable costs equal to 40% of sales. What will pretax income equal if sales are $325,000?

• A) $57,500.
• B) $122,500.
• C) $130,000.
• D) $181,250.
• E) $252,500.

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Definitions:

Electric Degrees

A unit of measurement used in electrical engineering to describe phase angle, where 360 electric degrees correspond to one full cycle of a sine wave.

Series RC

Refers to an electrical circuit in which a resistor and a capacitor are connected in a series configuration, affecting the circuit's overall impedance and phase angle.

Total Impedance

The combined resistance and reactance in an electrical circuit, measuring the circuit's opposition to alternating current.

Capacitive Reactance

The resistance that a capacitor offers to the changes in voltage in an AC circuit.