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Computer Science
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

Operations Research : Applications and Algorithms
Operations Research : Applications and Algorithms
4th Edition
ISBN:9780534380588
Author:Wayne L. Winston
Publisher:Wayne L. Winston
Chapter16: Probabilistic Inventory Models
Section: Chapter Questions
Problem 2RP
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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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