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Lexi Inc. has a single product, whose selling price is $250 and whose variable cost is 72% of sales price. The company's monthly fixed expenses are $60,000. Required:
1. Using the equation method, compute the unit sales that are required to earn a target before-tax profit of $20,000.
2. Using the contribution margin approach, compute the dollar sales that are required to earn a target before-tax profit of $25,000.


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