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Question - The holiday card company, a producer of specialty cards, has asked you to complete several calculations:
Income tax rate 30%
Selling price per unit $6.60
Variable cost per unit $5.28
Total fixed costs
1. What is the breakeven point in cards?
2. What sales volume is needed to earn an after-tax net income of $13,028.40?
3. How many cards must be sold to earn an after-tax net income of $18,480?
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