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Terra Inc. is considering two production methods. The price of its product is $30 per unit. Method 1 has annual fixed costs of $120,000 and

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Terra Inc. is considering two production methods. The price of its product is $30 per unit. Method 1 has annual fixed costs of $120,000 and variable cost per unit of $18. Method 2 only has annual fixed costs of $10,000 but the variable cost per unit is $25. a) Calculate the EBIT of the two methods if sales quantity is 10,000 units, 15,000 units and 20,000 units. b) What is the breakeven quantity of the two methods (the sales quantity that they have the same EBIT)? c) Assume sales quantity is 20,000 units. Calculate the DOL of the two methods

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