FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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A firm, which sells widgets, has annual fixed
costs of $16,000,000. Each widget sells for
$13 and takes $8 in variable costs to
manufacture. If sales volume last year was
$30,000,000, what is the number of widgets
the firm must sell to have EBIT = 0?
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Transcribed Image Text:A firm, which sells widgets, has annual fixed costs of $16,000,000. Each widget sells for $13 and takes $8 in variable costs to manufacture. If sales volume last year was $30,000,000, what is the number of widgets the firm must sell to have EBIT = 0?
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