In 20A, Santos presented total variable costs at $687.50; total fixed costs at $6,750,000; sales price per unit $1,250; sold 20,000 units; tax rate at 40%. What is the required sales amount to equal 20A net income after tax if the company is the entity is to spend $562,500 in 20B? $22,250,000 $24,450,000 $26,250,000 None of the above

Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter10: Cost Analysis For Management Decision Making
Section: Chapter Questions
Problem 13E
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In 20A, Santos presented total variable costs at $687.50; total fixed costs at $6,750,000; sales price per unit $1,250; sold 20,000 units; tax rate at 40%. What is the required sales amount to equal 20A net income after tax if the company is the entity is to spend $562,500 in 20B?

$22,250,000

$24,450,000

$26,250,000

None of the above

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