Question

Framing House, Inc. produces and sells picture frames. Variable costs are expected to be $17 per...

Framing House, Inc. produces and sells picture frames. Variable costs are expected to be $17 per frame; fixed costs for the year are expected to total $130,000. The budgeted selling price is $25 per frame.

The sales dollars required by Framing House to make an after-tax profit (πA) of $10,000, given an income tax rate, t, of 20 percent, would be (round intermediate calculation(s) to nearest whole number):

Multiple Choice

  • $442,750

  • $439,000

  • $436,500

  • $460,000

  • $445,325

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