The Love Company, a producer of specialty cards, has asked you to complete several calculations based upon the following information:
Income tax rate 30%
Selling price per unit $6.60
Variable cost per unit $5.28
Total fixed costs $46,200.00
a. Compute the break-even point in units.
b. Compute the sales volume necessary to produce an after-tax net income of $13,028.40.
c. Compute the total units sold to earn an after-tax net income of $18,480.
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