Obtaining a target pretax profit


Problem:

The following information pertains to Oliver's operations:

Selling price per unit        $50
Variable costs per unit      $30
Total fixed costs           $100,000

The sales volume required to obtain a target pretax profit of $25,000 is:

  • $125,000
  • $208,333
  • $250,000
  • $312,500

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Accounting Basics: Obtaining a target pretax profit
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