Management Anticipates Fixed Costs of $72,500 and Variable Costs Equal

question 16

Multiple Choice

Management anticipates fixed costs of $72,500 and variable costs equal to 40% of sales. What will pretax income equal if sales are $325,000?

• A) $57,500.
• B) $122,500.
• C) $130,000.
• D) $181,250.
• E) $252,500.

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Definitions:

Geert Hofstede

A Dutch social psychologist known for his research on cross-cultural communication and the dimensions of national cultures.

National Culture

The set of shared values, beliefs, customs, and behaviors that define a nation or country, influencing individual and collective identities.

Mental Programming

The cognitive patterns and ways of thinking that are deeply ingrained in an individual or culture, influencing behavior and perceptions.

Up-and-Down Movement

Vertical motion, typically referring to objects or points moving higher or lower in position.