Assume the Following Cost Behaviour Data for Portrait Company -What Volume of Sales Dollars Is Required to Earn a

Assume the following cost behaviour data for Portrait Company: $$\begin{array} { l l l } \text { Sales price } & \$ 18.00 & \text { per unit } \\\text { Variable costs } & \$ 13.50 & \text { per unit } \\\text { Fixed costs } & \$ 22,500 & \\\text { Tax rate } & 40\% &\end{array}$$
-What volume of sales dollars is required to earn a before-tax income of $27,000?

A) $90,000
B) $180,000
C) $198,000
D) $270,000

Correct Answer:

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