Snower Corporation Sells Product G for $150 Per Unit,the Variable

question 126

Multiple Choice

Snower Corporation sells product G for $150 per unit,the variable cost per unit is $105,the fixed costs are $720,000,and Snower is in the 25% corporate tax bracket.What are the sales (in dollars) required to earn a net income (after tax) of $40,000?

• A)$2,577,778
• B)$2,533,350
• C)$2,566,667
• D)$2,400,000

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Definitions:

Quantitative Indication

Numerical evidence or metrics that signal the performance, situation, or condition of an entity or market.

Key Management Personnel

Individuals with authority and responsibility for planning, directing, and controlling the activities of an entity, typically at a high level.

Related Party Transactions

Financial transactions or arrangements between the reporting entity and any related parties, such as its management, significant shareholders, or affiliates.

Remuneration

Payment or compensation received for services rendered or employment, including salaries, wages, and benefits.