If the Firm Projects Next Year's Sales to Be $1,000,000

Multiple Choice

If the firm projects next year's sales to be $1,000,000, variable costs to be $250,000, fixed costs to be $250,000, depreciation to be $100,000 and income taxes to be $100,00, what is the firm's profit before taxes?

A) $300,000
B) $400,000
C) $500,000
D) $750,000