A firm expects to sell 25,200 units of its product at $7 per unit. Pretax income is predicted to be $60,200. If the variable costs per unit are $3, total fixed costs must be: Multiple Choice $15,400. $176,400. $75,600. $40,600.

A firm expects to sell 25,200 units of its product at $7 per unit. Pretax income is predicted to be $60,200. If the variable costs per unit are $3, total fixed costs must be: Multiple Choice $15,400. $176,400. $75,600. $40,600.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

### Problem Statement

A firm expects to sell 25,200 units of its product at $7 per unit. Pretax income is predicted to be $60,200. If the variable costs per unit are $3, total fixed costs must be:

### Multiple Choice Options

- ○ $15,400
- ○ $176,400
- ○ $75,600
- ○ $40,600
- ○ $116,200

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