Red Hot Fire Company, a producer of red-hot salsa, has the following information: Income tax rate 30% Selling price per unit $5.00 Variable cost per unit $3.50 Total fixed costs $90,000.00 must be sold to obtain a targeted income before taxes of $30,000. Q10,000 units O 27,000 units O 45,000 units O 80099 units

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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QUESTION 14
Red Hot Fire Company, a producer of red-hot salsa, has the following information:
Income tax rate
30%
Selling price per unit
Variable cost per unit
$5.00
$3.50
Total fixed costs
$90,000.00
must be sold to obtain a targeted income before taxes of $30,000.
O 10,000 units
O27,000 units
O 45,000 units
U 80,000 units
Transcribed Image Text:QUESTION 14 Red Hot Fire Company, a producer of red-hot salsa, has the following information: Income tax rate 30% Selling price per unit Variable cost per unit $5.00 $3.50 Total fixed costs $90,000.00 must be sold to obtain a targeted income before taxes of $30,000. O 10,000 units O27,000 units O 45,000 units U 80,000 units
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