Quick answer of this accounting questions Management anticipates fixed costs of $95,000 and variablecosts equal to 35% of sales. What will pretax income equalif sales are $480,000?

Step 1: Definition of Pretax IncomePretax Income refers to the amount of profit a company earns…

Answered: Management anticipates fixed costs of…

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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Management anticipates fixed costs of $73,000 and variable costs equal 47% of sales. What will income equal if sales are $330,000.
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Quick answer of this accounting questions
Log Co has an operating gearing ratio of 33.33%. Its sales are currently $100m and its operating profit is $20m. Operating gearing is calculated by dividing fixed costs by variable costs. What will its operating profit be if its sales increase by 15%? O $21m O $23m O $27m O $26m

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Management anticipates fixed costs of $95,000 and variable costs equal to 35% of sales. What will pretax income equal if sales are $480,000?