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