Management anticipates fixed costs of $73,000 and variable costs equal to 47% of sales. What will pretax income equal if sales are $330,000?

Multiple Choice

• $101,900.

• $196,050.

• $155,100.

• $82,100.

• $257,000

• Forrester Company is considering buying new equipment that would increase monthly fixed costs from $122,000 to $153,000 and would decrease the current variable costs of $60 by $20 per unit. The selling price of $100 is not expected to change. Forrester's current break-even sales are $305,000 and current break-even units are 3,050. If Forrester purchases this new equipment, the revised break-even point in units would:

  Multiple Choice

• Increase by 500.

• Decrease by 500.

• Increase by 6,100.

• Decrease by 3,050.

• Increase by 3,050.