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Meredith Company Wishes to Earn After- Tax Net Income of $18,000

Question 4

Multiple Choice

Meredith Company wishes to earn after- tax net income of $18,000. Total fixed costs are $84,000, and the contribution margin per unit is $6.00. Meredith's tax rate is 40%. The number of units that must be sold to breakeven is:


A) 19,000 units
B) 21,500 units
C) 14,000 units
D) 17,000 units

Correct Answer:

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