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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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