Old MacDonald Had a Farm with Expected Fixed Costs for Next

question 118

Multiple Choice

Old MacDonald had a farm with expected fixed costs for next year of $91,000. The projected selling price per bushel is $12, with variable costs of $5 per bushel.
How much revenue past the breakeven point does MacDonald have to earn to realize a pre-tax profit of $36,000 if variable costs drop to $3 per bushel?

• A) $61,718
• B) $169,333
• C) $48,000
• D) $54,000

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