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Assume Total Fixed Costs of $160,000,variable Costs Per Unit of $6

Question 94

Multiple Choice

Assume total fixed costs of $160,000,variable costs per unit of $6, and contribution margin per units of $4. What are the sales dollars required to earn a target net income of $50,000 assuming a tax rate of 20%?


A) $350,000
B) $556,250
C) $525,000
D) $500,000

Correct Answer:

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