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Suppose that a company sells each unit of its product for $100. The company incurs variable product costs amounting to $25 and variable period costs
Suppose that a company sells each unit of its product for $100. The company incurs variable product costs amounting to $25 and variable period costs amounting to $15 for each unit sold. Fixed costs are $300,000. The company desires an after-tax profit of $120,000 and the companys tax rate is 20%. How many units of its product does the company need to sell to achieve this income target?
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