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Elgers' Company produces valves for the plumbing industry. Elgers' per unit sales price and variable costs are as follows. Sales price $12 Variable costs 8 Elgers' practical plant capacity is 40,000 units. Elgers' total fixed costs aggregate $48,000 and it has a 40% effective tax rate. The maximum net profit that Elgers can earn is
A. $67,200 B. $96,000 C. $48,000 D. $112,000
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