The Cost Function for Liao Company Is: TC = $800

question 124

Multiple Choice

The cost function for Liao Company is: TC = $800 + 0.375 × Revenue. If Liao expects after-tax income of $600, and the tax rate is 40%, what is the firm's margin of safety?

• A)$3,680
• B)$2,400
• C)$2,880
• D)$1,600

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