Question
Firm A has Fixed costs of $250,000 and Variable costs are 70% of Sales. Firm B has Fixed costs of $600,000 and Variable Costs are
Firm A has Fixed costs of $250,000 and Variable costs are 70% of Sales. Firm B has Fixed costs of $600,000 and Variable Costs are 40% of Sales. At what level of Sales do the two firms have the same EBIT?
a) $666,667
b) $1,166,667
c) $1,600,000
d) $2,000,000
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Financial Intelligence
Authors: Income Mastery
1st Edition
1647773210, 978-1647773212
