If a Company Has an Income Tax Rate of 40

question 47

Multiple Choice

If a company has an income tax rate of 40% and fixed costs of $105,000,and wishes to earn an after-tax profit of $150,000,what must its pre-tax income be?

• A)$375,000
• B)$425,000
• C)$250,000
• D)$175,000

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Definitions:

Chlorpromazine

An antipsychotic medication used to treat various mental health disorders such as schizophrenia and bipolar disorder.

Schizophrenia

A mental disorder characterized by distorted thinking, perceptions, emotions, and behaviors.

Positive Symptoms

Symptoms of a disorder that involve the presence of abnormal behaviors or experiences, such as hallucinations or delusions, commonly associated with schizophrenia.

Antipsychotic Medications

Drugs used to treat psychiatric conditions by altering brain chemistry, particularly for conditions like schizophrenia and bipolar disorder.