A company has fixed costs of $250,000 per year. They sell a single product for $25 per unit. Variable costs are $7 per unit. Given a combined state and local tax rate of 40%, how many units must be sold to earn an after-tax profit of $120,000?

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Multiple Choice

A company has fixed costs of $250,000 per year. They sell a single product for $25 per unit. Variable costs are $7 per unit. Given a combined state and local tax rate of 40%, how many units must be sold to earn an after-tax profit of $120,000?

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