Old MacDonald had a farm with expected fixed costs for next year of $91,000. The projected selling price per bushel is $12, with variable costs of $5 per bushel.
How much revenue past the breakeven point does MacDonald have to earn to realize a pre-tax profit of $36,000 if variable costs drop to $3 per bushel?
A) $61,718
B) $169,333
C) $48,000
D) $54,000

Question

Quizplus · Accepted Answer

The Answer of Old MacDonald had a farm with expected fixed costs for next year of $91,000. The projected selling price per bushel is $12, with variable costs of $5 per bushel.
How much revenue past the breakeven point does MacDonald have to earn to realize a pre-tax profit of $36,000 if variable costs drop to $3 per bushel?
A) $61,718
B) $169,333
C) $48,000
D) $54,000

Old MacDonald Had a Farm with Expected Fixed Costs for Next