Company W expects a Taxable Income of $7,350. W's current income statement reflects the following information: Sales volume = 20,000, sale price = $10.00, per unit variable expenses = $8.00, and a NET LOSS of $10,000.
A proposed new strategy requires the following strategy changes: (1) decrease sales volume by 5.0% by increasing sale price per unit by 2.0%, and (2) reduce variable expenses per unit by $0.65. To earn the expected taxable income, total fixed expenses cannot exceed?
Group of answer choices
$50,000
None of the other answers are correct
$46,800
$35,700
$32,650