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Compute the Level of Sales Required to Attain a Target Profit Ng Corporation produces and sells only one product; its selling price is $100 and
Compute the Level of Sales Required to Attain a Target Profit Ng Corporation produces and sells only one product; its selling price is $100 and its variable cost is $80 per unit. The company's monthly fixed expense is $20,000. Required: Using the equation method, solve for the unit sales that are required to earn a target profit before taxes of $3,000. Using the formula method, solve for the dollar sales that are required to earn a target profit before taxes of $4,000. Using the formula method, calculate the number of units that need to be sold to earn an after-tax income of $6,000, assuming a tax rate of 25%
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