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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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The net income allows the company to see its total profits for the year after expenses have been accounted for.

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Which of the following refers to individual units within a firm that operate like separate​ businesses, with each having its own
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Bonita Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis. Item N
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