Hiller Co Anticipates Total Fixed Costs of $120,000 and Variable Costs

question 37

Essay

Hiller Co. anticipates total fixed costs of $120,000 and variable costs equal to 40% of sales. What is the pretax income if sales are $650,000?

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Definitions:

E-to-P Expectancy

The belief that exerting a certain amount of effort will lead to a specific level of performance.

Employee Motivation

The level of enthusiasm, fidelity, and ingenuity that staff members of a corporation show in their job functions.

Four-Drive Theory

A motivational theory that identifies four basic drives—the drive to acquire, bond, comprehend, and defend—that govern human behavior.

Human Emotions

Complex reactions that involve a person's psychological and physical state in response to stimuli or situations, influencing behavior and decision-making.