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Question - 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%
Required - Find the sales volume required to obtain a target after-tax profit of $54,000?
a. 15,125 units
b. 4,572 units
c. 6,500 units
d. 5,000 units
e. None of these choices is correct.
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