Duplicate Footballs, Inc., expects to sell 15,000 balls this year. The balls sell for $110 each and

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Duplicate Footballs, Inc., expects to sell 15,000 balls this year. The balls sell for $110 each and have a variable cost per unit of $80. Fixed costs, including depreciation and amortization, are currently $220,000 per year. How much can either the fixed costs or the variable cost per unit increase in order to keep the company from having a negative EBIT.

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Fundamentals of corporate finance

ISBN: 978-0470876442

2nd Edition

Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates

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