Total fixed costs problem
A firm expects to sell 25,000 units of its product at $11 per unit. Pretax income is predicted to be $60,000. If the variable costs per unit are $5, total fixed costs must be:
a. $ 65,000.
b. $ 90,000.
c. $125,000.
d. $215,000.
e. $275,000.
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