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ABC Company provides accounting services at an average price of $110 per hour and incurs variable costs of $66 per hour. Assume the average fixed

ABC Company provides accounting services at an average price of $110 per hour and incurs variable costs of $66 per hour. Assume the average fixed costs are $7,200 and the tax rate is 20%.

a) What is the amount of sales dollars that must be achieved to reach the breakeven point? b) If the company desires to make an after-tax profit of $3,600, how many hours must be completed?

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