Question: Trojan Limited is considering adding a new product to its range of merchandise. The product has the following prices and costs: Unit selling price $80.00

Trojan Limited is considering adding a new product to its range of merchandise. The product has the following prices and costs:

Unit selling price $80.00

Unit variable cost $47.20

Total fixed costs per year $984,000

Income tax rate 40%

How many units must Trojan sell to earn a targeted after-tax profit of $492,000?

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