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Dannica Corporation produces products that it sells for $40 each. Variable costs per unit are $25, and annual fixed costs are $360,000. Dannica desires to
Dannica Corporation produces products that it sells for $40 each. Variable costs per unit are $25, and annual fixed costs are $360,000. Dannica desires to earn an after-tax (post-tax) profit of $150,000 for the year. The expected income tax rate is 20%.
Determine the sales volume in units required to earn the desired after-tax profit.
Multiple Choice
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None of the choices presented are within 100 units of the correct answer.
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28,922 Units
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34,000 Units
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36,500 Units
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30,180 Units
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