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Baxter Enterprises wants to earn a pre-tax income of $45,000. The company has fixed costs of $105,000, and the contribution margin per unit is $7.50, How many units must be sold to reach the target income? Options: a) 18,000 b) 20,000 c) 22,000 d) 25,000

Baxter Enterprises wants to earn a pre-tax income of $45,000. The company has fixed costs of $105,000, and the contribution margin per unit is $7.50, How many units must be sold to reach the target income? Options: a) 18,000 b) 20,000 c) 22,000 d) 25,000

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 7EB: Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are...
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Baxter Enterprises wants to earn a pre-tax income of $45,000. The company has fixed costs of $105,000, and the contribution margin per unit is $7.50, How many units must be sold to reach the target income? Options: a) 18,000 b) 20,000 c) 22,000 d) 25,000
Transcribed Image Text:Baxter Enterprises wants to earn a pre-tax income of $45,000. The company has fixed costs of $105,000, and the contribution margin per unit is $7.50, How many units must be sold to reach the target income? Options: a) 18,000 b) 20,000 c) 22,000 d) 25,000
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