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Panjandrum Industries, a manufacturer of industrial piping, is evaluating whether it should expand into the sale of plastic fittings for home garden sprinkler systems. It

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Panjandrum Industries, a manufacturer of industrial piping, is evaluating whether it should expand into the sale of plastic fittings for home garden sprinkler systems. It has made the below estimates of two types of sprinkle systems it could bring to market and would like to decide the operating breakeven point (EBIT-O) for each option before making decision Investment A Investment B Sales Price per unit $20 $20 Variable Cost per unit $15 $10 Fixed Costs $250,000 $700,000 - Investment Capital 2,000,000 2,000,000 Tax rate 40% 40% For each option (Investment A and Investment B), determine the level of output (Breakeven quantity) that would achieve the operating breakeven point. Edit Insert Format Tools Table 12pt Paragraph BI U A T

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