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ZYX, Inc. has purchased 1,000 widgets for $73 per widget. They would incur $15,000 of fixed costs to sell all 1,000 widgets. Their income tax

ZYX, Inc. has purchased 1,000 widgets for $73 per widget. They would incur $15,000 of fixed costs to sell all 1,000 widgets. Their income tax rate is 25%.

A. If they wanted to make an after-tax profit of $25,000, what price should they charge for each Widget? Round dollar answers to the even dollar and per unit amounts to the even penny.

B. What other factors should they consider and why before they attempted to sell the widgets at the price you calculated in Question A?

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