management anticipates fixed cost of $72,500 and variable cost equal to 40% of sales. what will pretax income equal if sales are $325,000?

To calculate the pre-tax income, we need to find the total cost and then deduct it from the sales.

1. Calculate the variable cost:
Variable Cost = 40% * Sales
Variable Cost = 0.4 * $325,000 = $130,000

2. Calculate the total cost:
Total Cost = Fixed Cost + Variable Cost
Total Cost = $72,500 + $130,000 = $202,500

3. Calculate the pre-tax income:
Pre-tax Income = Sales - Total Cost
Pre-tax Income = $325,000 - $202,500 = $122,500

Therefore, the pre-tax income will equal $122,500 if the sales are $325,000.