Assume the Following Cost Behavior Data for Graphic Arts Company

question 71

Multiple Choice

Assume the following cost behavior data for Graphic Arts Company: $\begin{array}{lc}\text { Sales price } & \$ 18.00 \text { per unit } \\\text { Variable costs } & \$ 13.50 \text { per unit } \\\text { Fixed costs } & \$ 22,500 \\\text { Tax rate } & 40 \%\end{array}$ What volume of sales dollars is required to earn an after-tax income of $40,500?

• A)$360,000
• B)$90,000
• C)$252,000
• D)$495,000

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