15.

5 of 24 Marks Montreal Ventures is considering starting a new company to produce stereos. The sales price would be set at 1.5 times the variable cost per unit; the VC/unit is estimated to be $2.50; and fixed costs are estimated at $120,000. What sales volume would be required in order to break even, i.e., to have an EBIT of zero for the stereo business? O a. 86,640 O b. 91,200 OC. 96,000 d. 100,800 None of the above e. Unsure