Question 4 Incorrect Mark 0.00 out of 1.00 Flag question Time-Adjusted Cost-Volume-Profit Analysis with Income Taxes Honeydukes Treat Shop is considering the desirability of producing a new chocolate candy called Pleasure Bombs. Before purchasing the new equipment required to manufacture Pleasure Bombs, Neville Long, the shop's proprietor performed the following analysis: $1.98 Unit selling price Variable manufacturing and selling costs 1.73 $0.25 Unit contribution margin Annual fixed costs $19,000 Depreclation (straight-line for 4 years) 45,000 Other (all cash) $64,000 Total $64,000/ $0.25 256,000 units Annual break-even sales volume Because the expected annual sales volume is 270,000 units, Long decided to undertake the production of Pleasure Bombs. This required an immediate investment of $76,000 in equipment that has a life of four years and no salvage value. After four years, the production of Pleasure Bombs will be discontinued. With a 40 percent tax rate and a 8 percent time value of money, determine the annual unit sales required to break even on a time-adjusted basis. Assume straight-line depreciation is used to determine tax payments nit