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The Holiday Card Company, a Producer of Specialty Cards, Has

Question 11

Essay

The Holiday Card Company, a producer of specialty cards, has asked you to complete several
calculations based upon the following information:
The Holiday Card Company, a producer of specialty cards, has asked you to complete several  calculations based upon the following information:    Required: a. What is the break-even point in cards? b. What sales volume is needed to earn an after-tax net income of $13,028.40? c. How many cards must be sold to earn an after-tax net income of $18,480?

Required:
a. What is the break-even point in cards?
b. What sales volume is needed to earn an after-tax net income of $13,028.40?
c. How many cards must be sold to earn an after-tax net income of $18,480?

Correct Answer:

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a. $46,200/($6.60 - $5.28) = 35,000 unit...

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