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The Game Company provides a virtual reality experience to customers who pay $20 for a one hour game. The firm pays an all-inclusive equipment and location fee of $40,000 a year and pays a total of $60,000 of salary to location managers each year. The firm pays a license fee of $4 each time the game is played and there is a $1 per game commission for managers.
Problem 1: If the Game Company pays taxes at 30%, what game sales level is required if the firm wishes to make $28,000 after taxes?
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