CORRECT ANSWER B. THE MAXIMUM NET PROFIT ELGERS CAN EARN IS $67...

259.

Correct answer b. The maximum net profit Elgers can earn is $67,200 as shown below.

Contribution

$160,000

[40,000 x ($12 - $8)]

Fixed costs

48,000

Operating profit

112,000

Tax @ 40%

44,800

Net profit

$ 67,200