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:

Cap and Trade

A market-based approach to controlling pollution that allows companies to buy and sell emission allowances to meet environmental regulations.

Internalize

Refers to the process of incorporating external costs or benefits into a company's decision-making process.

ISO 14000

A family of standards related to environmental management systems and tools designed to help organizations minimize negative effects on the environment.

Sustainability

The capacity for systems, processes, and activities to maintain themselves over time and minimize negative environmental impacts.