QUESTIONS Incorrect Mark 0.00 out of 5.00 P 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: Unit selling price Variable manufacturing and selling costs 1.73 Unit contribution margin Annual fixed costs Depreciation (straight-line for 4 years) $19,000 Other (all cash) Total $1.98 $0.25 45,00() $64,000 Annual break-even sales volume $64,000/$0.25 256,000 units Because the expected annual sales volume is 160,000 units, Long decided to undertake the production of Pleasure Bombs. This required an immediate investment of $87,000 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 Round UP to the nearest unit. 297,114 xunits