Tenny Inc. is planning to sell 50,000 units of its products next year. Fixed costs will total

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Tenny Inc. is planning to sell 50,000 units of its products next year. Fixed costs will total €6 million, and the variable costs are planned to be 60 percent of the sales.

a. The firm wants to achieve a level of EBIT of €400,000. What selling price per unit is necessary to achieve this result?

b. Set up an analytical income statement to verify your solution to part (a).

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Foundations Of Finance

ISBN: 9781292155135

9th Global Edition

Authors: Arthur J. Keown, John D. Martin, J. William Petty

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Question Posted: Feb 21, 2024 05:01 AM

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Tenny Inc. is planning to sell 50,000 units of its products next year. Fixed costs will total

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a To achieve an EBIT of 400000 the firm needs to generate enough revenue to cover its fixed costs an...View the full answer

Foundations Of Finance

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