Lance is interested in entering the catfish farming business.He estimates if he enters this business,his fixed costs would be $50,000 per year and his variable costs would equal 30 percent of sales.If each catfish sells for $2,how many catfish would Lance need to sell to generate a profit that is equal to 10 percent of sales?
A) 40,000
B) 41,667
C) 35,000
D) No level of sales can generate a 10 percent net return on sales.
Correct Answer:
Verified
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