Question
The Wildhorse Archery Company management estimates that its new Galactically Flexible Bow project will have to generate EBIT of $20,000 each year to be viable.
The Wildhorse Archery Company management estimates that its new Galactically Flexible Bow project will have to generate EBIT of $20,000 each year to be viable. The projects fixed cash expenses are expected to equal $7,500, and its depreciation and amortization expenses are expected to be $5,500 each year. If the Galactically Flexible bows are expected to sell for $160 each and the variable cost to produce each bow is expected to be $110, then how many of these bows must the firm produce and sell each year to generate annual EBIT of $20,000? Required number of bows units
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