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Management Anticipates Fixed Costs of $72,500 and Variable Costs Equal

Question 16

Multiple Choice

Management anticipates fixed costs of $72,500 and variable costs equal to 40% of sales. What will pretax income equal if sales are $325,000?

A) $57,500.
B) $122,500.
C) $130,000.
D) $181,250.
E) $252,500.

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