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Assume the Following Cost Behavior Data for Graphic Arts Company

Question 128

Multiple Choice

Assume the following cost behavior data for Graphic Arts Company: Sales price $18.00 per unit
Variable costs $13.50 per unit
Fixed costs $22,500
Tax rate 40%
What volume of sales dollars is required to earn an after-tax income of $40,500?


A) $360,000
B) $90,000
C) $252,000
D) $495,000

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