Compute the sales volume required

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Question - Adelman Art is considering the purchases of an art gallery in New Orleans. Adleman would buy the assets of the gallery for $400,000. Projections for Adelman's first year of ownership are: Sales = 1,200 artist signed prints, sale price per print = $600, variable expenses = 60%, and fixed expenses = $251,500. Adelman's executive committee recognizes the investment has significant risk. Accordingly, Adelman's ownership team expects a 14.5% after-tax return on investment with a tax rate of 20.0%. Compute the sales volume required to reach the required target profit.

Reference no: EM133087951

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