Muy Mal Company, a Producer of Salsa, Has the Following

question 50

Multiple Choice

Muy Mal Company, a producer of salsa, has the following information: $$\begin{array} { l r } \text { Income tax rate } & 30 \% \\\text { Selling price per unit } & \$ 5.00 \\\text { Variable cost per unit } & \$ 3.00 \\\text { Total fixed costs } & \$ 90,000.00\end{array}$$ _____ must be sold to obtain a targeted after-tax income of $14,000.

• A)45,000 units
• B)52,000 units
• C)55,000 units
• D)60,000 units

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Definitions:

Postpurchase Cognitive Dissonance

The feeling of uncertainty or regret that a consumer may experience after making a purchase decision.

Lessen Dissonance

The act of reducing conflict or inconsistency, especially in the context of cognitive dissonance in psychology, where individuals strive for internal consistency between their beliefs and actions.

Frequent-Flyer Miles

Loyalty program points awarded by airlines to passengers who travel with them, which can be redeemed for flight discounts, upgrades, or other rewards.

Noncompensatory Decision

A decision-making process in which options are evaluated in a way that one attribute cannot make up for a disadvantage in another.