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Shelton Company Below Is an Income Statement for Shelton Company

Question 101

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Shelton Company Below is an income statement for Shelton Company:
Shelton Company Below is an income statement for Shelton Company:   Refer to Shelton Company. Assuming that the fixed costs are expected to remain at $300,000 for the coming year and the sales price per unit and variable costs per unit are also expected to remain constant, how much profit before taxes will be produced if the company anticipates sales for the coming year rising to 125 percent of the current year's level? A)  $112,500 B)  $187,500 C)  $262,500 D)  $300,000 Refer to Shelton Company. Assuming that the fixed costs are expected to remain at $300,000 for the coming year and the sales price per unit and variable costs per unit are also expected to remain constant, how much profit before taxes will be produced if the company anticipates sales for the coming year rising to 125 percent of the current year's level?


A) $112,500
B) $187,500
C) $262,500
D) $300,000

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