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Henderson Company Below is an income statement for Henderson Company: Sales $400,000 Variable costs (125,000) Contribution margin $275,000 Fixed costs (200,000) Profit before taxes $
Henderson Company Below is an income statement for Henderson Company: Sales $400,000 Variable costs (125,000) Contribution margin $275,000 Fixed costs (200,000) Profit before taxes $ 75,000 Refer to Henderson Company. Assuming that the fixed costs are expected to remain at $200,000 for the coming year and the sales price per unit and variable costs per unit are also expected to remain constant, how much profit before taxes will be produced if the company anticipates sales for the coming year rising to 130 percent of the current year's level? Select one: O a. $195,000 b. A prediction cannot be made from the information given. 0 C. $157,500 O d. $97,500
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