Question
12.1 Retro Inc. sells vintage football jerseys for $72 each. Variable cost are $58 per unit and total fixed cost (including depreciation and amortization expense)
12.1 Retro Inc. sells vintage football jerseys for $72 each. Variable cost are $58 per unit and total fixed cost (including depreciation and amortization expense) are $84,000 per year. If sales for next are expected to equal 8,000 jerseys, how much can variable cost per unit increase without EBIT becoming negative?
12.2. how would a capital-intensive company fare during good and poor economic times as compared with less capital-intensive companies? explain.
12.3 The manager of Roys Restaurant has determined that if revenues were to increase by 20 percent, then EBIT would increase by 45 percent to $87,000. What would be the corresponding change in EBITDA IF REVENUES INCREASED by percent and cash fixed cost are $35,000?
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