35. Wilco Inc. is considering dropping its line of finance textbooks. The following data relates to the finance line:
Sales Revenue
Variable COGS
Variable Selling Cost
Fixed Costs (30% Avoidable)
$350,000
$280,000
$30,000
$90,000
Given the information above, should the finance line be dropped and how much would Wilco be better off or
worse off?
A. No, Wilco will be worse off by $13,000
B. Yes, Wilco will be better off by $23,000
C. Yes, Wilco will be better off by $50,000
D. No, Wilco will be worse off by $40,000
36. Recent reported financial data from Wilco, Inc. is as follows:
Sales Revenue
Variable Costs
Fixed Costs
Units of Sales and Production
$5,000,000
$3,000,000
$800,000
5,000 units
How many units would Wilco have to sell to earn an after-tax profit of $615,000 if Wilco's effective tax rate is
25%?
A. 4,050
?. 3,538
C. 3,153
D. 2,358