A firm expects to sell 26,100 units of its product at $14 per unit. Pretax income is predicted to be $61,100. If the variable costs per unit are $7, total fixed costs must be:

a. $304,300.
b. $365,400.
c. $95,500.
d. $121,600.
e. $182,700.

$121,600

Explanation:

Given the following;

Number of units = 26,100

Cost per unit = $14

Pretax income = $61,100

Variable cost = $7

Pretax income represents an organization's profif after deducting all operating expenses before except income tax.

Total revenue from sales = $14 × 26,100 = $365,400

If Total revenue from sales = $365,400

and profit accrued after deducting operating expenses = $61,100.

cost of production can be found by;

Total revenue from sales - Pretax income

$365,400 - #61,100 = $304,300

Total cost = $304,300

Using the formula :

Total cost = variable cost + fixed cost

Variable cost = $7 ×26,100 = $182,700

Fixed cost = $304,300 - $182,700 = $121,600

answer; marketing resource management;