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A firm expects to sell 24,500 units of its product at $10.50 per unit and to incur variable costs per unit of $5.50. Total fixed

A firm expects to sell 24,500 units of its product at $10.50 per unit and to incur variable costs per unit of $5.50. Total fixed costs are $65,000. The pretax net income is:

Multiple Choice

  • $57,500.

  • $65,000.

  • $122,500.

  • $134,750.

  • $199,750.

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