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A new company to produce state-of-the-art car stereo systems is being considered by Jagger Enterprises. The sales price would be set at 2.5 times the
A new company to produce state-of-the-art car stereo systems is being considered by Jagger Enterprises. The sales price would be set at 2.5 times the variable cost per unit; the VC/unit is estimated to be $2.50; and fixed costs are estimated at $220,000. What sales volume would be required in order to break even, i.e., to have an EBIT of zero for the stereo business? | ||
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a. | 86,640 units |
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b. | 58,667 units |
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c. | 96,667 units |
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d. | 10,080 units |
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e. | 15,840 units |
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