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If Targeted After-Tax Net Income Is $27,000 with a 40

Question 82

Multiple Choice

If targeted after-tax net income is $27,000 with a 40 percent tax rate, contribution margin per unit is $0.80, and total fixed costs are $148,000, then the number of units that must be sold is


A) 218,750.
B) 241,250.
C) 160,833.
D) 167,250.

Correct Answer:

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