In 2011, Angel's Bath and Body Shop had variable costs of $27,000, fixed costs of $18,000, and a net loss of $4,500. The annual sales volume required for Angel's to have a before-tax income of $18,000 is

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To find the required sales volume for a before-tax income of $18,000, we first calculate the total costs (variable + fixed) and add the desired income. Total costs = $27,000 (variable) + $18,000 (fixed) = $45,000. Desired income = $18,000. Therefore, required sales = $45,000 + $18,000 = $63,000. However, since there was a net loss of $4,500, we need to adjust for this loss, making the required sales $63,000 + $4,500 = $67,500. The closest option that covers all costs and desired income is $126,000.

In 2011, Angel's Bath and Body Shop Had Variable Costs