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:

Critical Period

A specific time during development when the presence or absence of certain experiences has a profound impact on the formation of abilities or characteristics.

Social Cognitive Theory

A theory that posits that learning occurs in a social context with a dynamic and reciprocal interaction of the person, environment, and behavior.

Classical Conditioning

An educational method where a response initially triggered by a second stimulus comes to be triggered by the first stimulus alone, due to the repeated pairing of both stimuli.

Classical Conditioned

A learning process that pairs a neutral stimulus with a response-producing stimulus, leading to the neutral stimulus eliciting the response on its own.