Question

Management anticipates fixed costs of $72,600 and variable costs equal to 42% of sales. What will pretax income equal if sales are $326,000?a. $325,000.b. $57, 500.c. $122, 500.d. $130,000.e. $181, 250.f. $252, 500.

Answer 1

$261,680

Step-by-step explanation:

Calculation for the What will pretax income equal

Pretax income= $326,000 - ((42% × $326,000) + $72,600)

Pretax income= $326,000 - $136,920 + $72,600

Pretax income=$261,680

Therefore What will pretax income equal if sales are $328,000 will be $261,680