Question
Millards Enterprises sells rubix cubes for $9 per cube. The fixed operating costs are $20,000, and the variable operating cost is $5 per cube. Recreate
Millards Enterprises sells rubix cubes for $9 per cube. The fixed operating costs are $20,000, and the variable operating cost is $5 per cube. Recreate and fill out the tables provided by answering the following questions: (a) Calculate Millards Enterprises EBIT with an estimated sales quantity of 8,000 cubes (b) Calculate EBIT for sales of 10,000 and 12,000 cubes, respectively (c) Calculate the percentage changes in cubes sold (with 8,000 cubes as the base level) and related percentage changes in EBIT when sales are 10,000 and 12,000 cubes respectively. (d) Based on the answer in part (c ), comment on the sensitivity of changes in EBIT in response to change in sales.
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