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Assume the following cost information for Fernandez Company: Selling price $120 per unit Variable costs $100 per unit Total fixed costs $80,000 Tax rate 40%

Assume the following cost information for Fernandez Company:

Selling price $120 per unit

Variable costs $100 per unit

Total fixed costs $80,000

Tax rate 40%

What is the number of units that must be sold to earn an after-tax net income of $42,000?

6,100 units

7,500 units

9,250 units

3,750 units

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