What sales volume required to obtain target after-tax profit

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The following information pertains to Napa Valley Inc.:

Selling price per unit = $50

Variable costs per unit = $30

Total fixed costs = $212,500

Tax rate = 40%

Problem 1: The sales volume required to obtain a target after-tax profit of $54,000 is:

Option 1: 5,125 units

Option 2: 4,572 units

Option 3: 6,500 units

Option 4: 5,000 units

Option 5: None of these choices is correct.

Reference no: EM132791047

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