Forms, Inc

question 45

Multiple Choice

Forms, Inc.wants to sell a sufficient quantity of products to earn an after-tax profit of $40,000.If the unit sales price is $10, unit variable cost is $8, and total fixed costs are $80,000, how many units must be sold to earn income of $40,000? Forms, Inc.has a tax rate of 40%.

• A)73,334 units
• B)18,334 units
• C)40,000 units
• D)90,000 units

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