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Consider this case: Pebrox Oil Co. Is considering a project that will have fixed costs of $10,000,000. Its sale price will be $37.50 per unit,
Consider this case: Pebrox Oil Co. Is considering a project that will have fixed costs of $10,000,000. Its sale price will be $37.50 per unit, and it will have a variable cost per unit of $12.80. Therefore, prebrox: Oil Co. has to sell ___ units to break even this project (Q_zt). Pebrox Oil Co.'s marketing sales director doesn't think that the market for the firm's goods is big enough to sell enough units to make the company's target operating profit of $25,000,000. In fact, she believes that the firm will be able to sell only about 150,000 units. However, she also thinks the demand for Pebrox Oil Co.'s product is relatively inelastic, so the firm can increase the sale price. Assuming that the firm can sell 150,000 units, what price must is set to meet the CFD'sEBIT goal of $25,000? $246.13 $307.66 $283.05 $258.44 Several factors affect a firm's operating break-even point. Based on the scenarios described in the following table, Indicate whether these factors would increase a firm's break-even quantity, decrease the break-even quantity, or lead to no change. When a large percentage of a firm's costs are fixed, the firm is said to have degree of operating leverage
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