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The following information pertains to Napa Valley Inc.:
Selling price per unit = $50
Variable costs per unit = $30
Total fixed costs = $212,500
Tax rate = 40%
Problem 1: The sales volume required to obtain a target after-tax profit of $54,000 is:
Option 1: 15,125 units
Option 2: 4,572 units
Option 3: 6,500 units
Option 4: 5,000 units
Option 5: None of these choices is correct.
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