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Company Q produces and sells 50 products. However, TWO products remain the best sellers. Of TOTAL sales, Product X accounts for 35%, and Product Y
Company Q produces and sells 50 products. However, TWO products remain the best sellers. Of TOTAL sales, Product X accounts for 35%, and Product Y represents 45%. The remaining "Other" products are grouped into a single category. Consider the following information: Products Other Sale price per unit Variable expenses per unit Total fixed expenses X $50.00 $30.00 $60.00 $30.00 $1,575,000 $25.00 $15.00 The investment in Company Q is $2,500,000 and investors expect an 18.0% AFTER-Tax rate of return. The company's tax rate = 20.0%. Compute Sales (in $s) for Product X to achieve the expected Target Profit O $3,937,500 O $1,225,000 O $2,565,000 O $1,662,500
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