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:

Distinctive Features

Unique attributes or characteristics that differentiate an object, concept, or entity from others in its category.

Organization

An arranged group of people with a specific purpose, structure, and strategy working toward common goals.

Employer Branding

The strategy of positioning a company as the preferred employer for a specific group that the company aims to attract and keep.

False Perception

A misunderstanding or incorrect interpretation of reality, often based on incomplete information or preconceived notions.