How Many Sales Are Required to Earn a Target After-Tax

question 69

Multiple Choice

How many sales are required to earn a target after-tax net income of $80,000 if total fixed costs are $100,000, the contribution margin ratio is 40%, and the tax rate is 25%?

• A)$6,000,000
• B)$250,000
• C)$516,667
• D)$1,050,000

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