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Montoya Manufacturing Has Fixed Costs of $2,500,000 and Variable Costs

Question 54

Multiple Choice

Montoya Manufacturing has fixed costs of $2,500,000 and variable costs are 40% of sales.What are the required sales if Montoya desires net income of $250,000?


A) $4,583,333
B) $4,166,667
C) $6,875,000
D) $6,250,000

Correct Answer:

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