Problem related to pretax income


A product sells for $200 per unit, and its variable costs per unit are $130. The fixed costs are $420,000. If the firm wants to earn $35,000 pretax income, how many units must be sold?

a. 6,500

b. 6,000

c. 500

d. 5,000

e. 5,500

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Accounting Basics: Problem related to pretax income
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