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A firm expects to sell 25,100 units of its product at $9 per unit. Pretax income...

A firm expects to sell 25,100 units of its product at $9 per unit. Pretax income is predicted to be $60,100. If the variable costs per unit are $4, total fixed costs must be:

  • $225,900.

  • $65,400.

  • $165,800.

  • $100,400.

  • $40,300.

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Answer #1
Sales(25100*9) 225900
Less:Variable costs(25100*4) 100400
Contribution margin $125500
Less:Fixed costs(balance)(125500-60100) $65400
Pretax income $60100
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