Hell Fire Company, a producer of salsa, has the following information: $$\begin{array} { l r }
\text { Income tax rate } & 30 \% \
\text { Selling price per unit } & \$ 5.00 \
\text { Variable cost per unit } & \$ 3.50 \
\text { Total fixed costs } & \$ 90,000.00
\end{array}$$ _____ must be sold to obtain a targeted income before taxes of $30,000.
A)10,000 units
B)27,000 units
C)45,000 units
D)80,000 units

Question

Hell Fire Company, a producer of salsa, has the following information: $$\begin{array} { l r } 
\text { Income tax rate } & 30 \% \
\text { Selling price per unit } & \$ 5.00 \
\text { Variable cost per unit } & \$ 3.50 \
\text { Total fixed costs } & \$ 90,000.00
\end{array}$$ _____ must be sold to obtain a targeted income before taxes of $30,000.
A)10,000 units
B)27,000 units
C)45,000 units
D)80,000 units

Quizplus · Accepted Answer

The Answer of Hell Fire Company, a producer of salsa, has the following information: $$\begin{array} { l r } 
\text { Income tax rate } & 30 \% \
\text { Selling price per unit } & \$ 5.00 \
\text { Variable cost per unit } & \$ 3.50 \
\text { Total fixed costs } & \$ 90,000.00
\end{array}$$ _____ must be sold to obtain a targeted income before taxes of $30,000.
A)10,000 units
B)27,000 units
C)45,000 units
D)80,000 units

Hell Fire Company, a Producer of Salsa, Has the Following