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

Question 118

Essay
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 breakeven 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?

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 breakeven 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 breakeven 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.Breakeven point in units = $46,200/($6...

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