Harvey Enterprises Expects Sales of $1,000,000 and Total Variable Costs

question 48

Multiple Choice

Harvey Enterprises expects sales of $1,000,000 and total variable costs of $250,000 for 2005. Total budgeted fixed costs are $200,000. What is the dollar amount of sales necessary to achieve after-tax profits of $700,000 if the tax rate is 30%?

• A)$1,200,000
• B)$1,600,000
• C)$3,377,333
• D)$4,800,000

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Definitions:

Assumption

A belief or statement taken for granted without proof, often forming the basis for further reasoning or arguments.

Trade

The exchange of goods, services, or both between two or more parties, either within a country or across international borders.

Brazil

A large South American country known for its diverse culture, tropical landscapes, and significant contributions to soccer, coffee production, and biodiversity.

Germany

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