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EBIT Sensitivity Stewart Industries sells its finished product for $ 8 . 4 5 per unit. Its fixed operating costs are $ 2 2 ,
EBIT Sensitivity Stewart Industries sells its finished product for $ per unit. Its fixed operating costs are $ and the variable operating cost per unit is $
a Calculate the firm's earnings before interest and taxes EBIT for sales of units.
b Calculate the firm's EBIT for sales of and units, respectively.
c Calculate the percentage changes in sales from the unit base level and associated percentage changes in EBIT for the shifts in sales indicated in part b
d On the basis of your findings in part c comment on the sensitivity of changes in EBIT in response to changes in sales.
a The firm's earnings before interest and taxes is $
Round to the nearest dollar.
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