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A product sells for $20 per unit, and has a contribution margin ratio of 40%. Fixed expenses total $120,000 annually. The company that makes
A product sells for $20 per unit, and has a contribution margin ratio of 40%. Fixed expenses total $120,000 annually. The company that makes and sells the product has an income tax rate of 40%. How many units must be sold to yield an after-tax operating profit of $30,000? 1) 18,750 units. 2) 14,167 units. O3) 24,375 units. 4) 21,250 units.
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