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Alexander Corporation sells its only product for $30 per unit. Its variable cost per unit are 40% of its selling price. Its total fixed costs for the year are $450,000. The company has an average income tax rate of 40%. How much in sales dollars must the company sell in order to earn a before tax profit of $270,000? $ 450,000. $1,500,000. $1,200,000. $ 40,000.

Alexander Corporation sells its only product for $30 per unit. Its variable cost per unit are 40% of its selling price. Its total fixed costs for the year are $450,000. The company has an average income tax rate of 40%. How much in sales dollars must the company sell in order to earn a before tax profit of $270,000? $ 450,000. $1,500,000. $1,200,000. $ 40,000.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Alexander Corporation sells its only product for $30 per unit. Its variable costs per unit are 40% of its selling price. Its total fixed costs for the year are $450,000. The company has an average income tax rate of 40%. How much in sales dollars must the company sell in order to earn a before tax profit of $270,000? O$ 450,000. $1,500,000. $1,200,000. $ 40,000.
Transcribed Image Text:Alexander Corporation sells its only product for $30 per unit. Its variable costs per unit are 40% of its selling price. Its total fixed costs for the year are $450,000. The company has an average income tax rate of 40%. How much in sales dollars must the company sell in order to earn a before tax profit of $270,000? O$ 450,000. $1,500,000. $1,200,000. $ 40,000.
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