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Assume the following: The selling price of a product is $4.00, variable costs are $2.50, and fixed costs are $4,600. The relevant tax rate is
Assume the following: The selling price of a product is $4.00, variable costs are $2.50, and fixed costs are $4,600. The relevant tax rate is 40%. Compute for the required sales level to achieve the following independent targets: 1. Minimum pre-tax profit of $5,000 2. Pre-tax margin of 35% of sales 3. After-tax profit of $4,440 4. After-tax margin of 19.50% of sales
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