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Given the following information, calculate the sales dollars needed to achieve the target profit. Target profit after tax $4,500 Fixed costs $2,000 Contribution margin ratio

Given the following information, calculate the sales dollars needed to achieve the target profit.

Target profit after tax $4,500

Fixed costs $2,000

Contribution margin ratio 40%

Tax rate 25%

Multiple choice question.

$30,000

$20,000

$16,250

$21,000

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