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Q12. PDQ has an expected sales volume of $1,000,000 with a variable cost ratio of 55%, and fixed costs of $200,000. What sales volume would

Q12. PDQ has an expected sales volume of $1,000,000 with a variable cost ratio of 55%, and fixed

costs of $200,000. What sales volume would be necessary to achieve a $100,000 after-tax

profit when income taxes average 40%?

a. $370,370

b. $666,667

c. $814,815

d. $818,182

e. $1,000,000

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