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Use the Information Provided Below to Answer the Following Questions

Question 175

Essay

Use the information provided below to answer the following questions: Use the information provided below to answer the following questions:   Required:  a.How many units would the company need to sell to earn $4,000 in operating income? b.How many units would the company need to sell to earn $4,000 in net income if the tax rate is 20%? c.By how much would operating income change from part (b) with a 10% increase in units sold? Required:
a.How many units would the company need to sell to earn $4,000 in operating income?
b.How many units would the company need to sell to earn $4,000 in net income if the tax rate is 20%?
c.By how much would operating income change from part (b) with a 10% increase in units sold?

Correct Answer:

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a.$10,000 ÷ $50 = 200 units; ($10,000 ̶ ...

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