Hydrogen Batteries sells its specialty automobile batteries for $85 each, while its current variable cost per unit

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Hydrogen Batteries sells its specialty automobile batteries for $85 each, while its current variable cost per unit is $65.Total fixed costs (including depreciation and amortization expense) are $150,000 per year. Management expects to sell 10,000 batteries next year, but is concerned that variable cost will increase next year due to material cost increases. What is the maximum variable cost per unit increase that will keep the EBIT from becoming negative?
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Fundamentals of Corporate Finance

ISBN: 978-1118845899

3rd edition

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

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