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Question - Dalton Brother pays 15% in taxes on income between $1 and $40,000. All income above $40,000 is taxed at 40%. The firm's variable costs as a percent of revenues are 60%. Annual fixed costs are $250,000.
Required -
i. What level of sales must the firm achieve to earn income after taxes of $150,000?
ii. Prepare a CVP graph for Dalton.
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