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Xi-Tech, Inc. is considering the introduction of a new music player with the following price and cost characteristics: Sales price $ 125 each Variable costs
Xi-Tech, Inc. is considering the introduction of a new music player with the following price and cost characteristics: Sales price $ 125 each Variable costs 75 each Fixed costs 180,000 per year Tax Rate 25% Required: (show your work) How many units and sales dollars must Xi-Tech sell to break even? How many units and sales dollars must Xi-Tech sell to make an and after-tax profit of $120,000 for the year? Prove your answer in part b by preparing a Contribution Margin Income Statement all the way through to after-tax profit.
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