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Ede4ka [16]
3 years ago
8

A firm expects to sell 25,900 units of its product at $7 per unit. Pretax income is predicted to be $60,900. If the variable cos

ts per unit are $3, total fixed costs must be:_____.
Business
1 answer:
maks197457 [2]3 years ago
4 0

Answer:

Fixed costs= $42,700

Explanation:

Giving the following information:

A firm expects to sell 25,900 units of its product at $7 per unit.

Pretax income is predicted to be $60,900.

Unitary variable cost= $3

<u>The pretax formula is:</u>

Pretax income= total sales - total variable cost - total fixed costs

<u>We have to isolate the fixed cost:</u>

Fixed costs= total sales - total variable cost - pretax income

Fixed costs= 25,900*(7-3) - 60,900

Fixed costs= $42,700

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3 years ago
True or false: Without knowing the future, it is best to have a cost structure with high variable costs.
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2 years ago
Calvin works in the accounting department for a textbook publishing firm preparing budgets and reporting production costs. What
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