2C1B FOR THE YEAR JUST ENDED, SILVERSTONE COMPANY’S SALES REVENUE WAS...

210.

CSO: 2C1b

LOS: 2C1b

For the year just ended, Silverstone Company’s sales revenue was $450,000.

Silverstone’s fixed costs were $120,000 and its variable costs amounted to $270,000. For

the current year sales are forecasted at $500,000. If the fixed costs do not change,

Silverstone’s profits this year will be

a.

$60,000.

b.

$80,000.

c.

$110,000.

d.

$200,000.