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Question - Holland Corporation earned an after-tax net income of $150,000 last year. Fixed costs were $750,000. The selling price per unit of its product was $120, of which $50 was a contribution to fixed cost and net income. The income tax rate was 40%.
Required -
A) How many units of product were sold last year?
B) What was the break-even point in units last year?
C) The company wishes to increase its after-tax net income by 20% this year. If selling prices and the income tax rate remain unchanged, how many units must be sold?
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