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
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### 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
Transcribed Image Text:### 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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