Answered: Aurora Systems Inc. anticipates fixed…

Aurora Systems Inc. anticipates fixed costs of $120,000 and variable costs equal to 40% of sales. What will the pre-tax income equal if sales are $500,000?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 7EB: Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are...

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I need help with this general accounting problem using proper accounting guidelines.

Aurora Systems Inc. anticipates fixed costs of
$120,000 and variable costs equal to 40% of sales.
What will the pre-tax income equal if sales are
$500,000?

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