Duplicate Footballs, Inc., management expects to sell 15,000 balls this year. The balls sell for $110 each
Question:
Duplicate Footballs, Inc., management expects to sell 15,000 balls this year. The balls sell for $110 each and have a variable cost per unit of $80. Fixed costs, including depreciation and amortization, are currently $220,000 per year. How much can either the fixed costs or the variable cost per unit increase before the company has a negative EBIT?
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The forecasted EBIT for the firm is Revenue 110 per ball 15000 balls 1650000 V...View the full answer
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Related Book For 
Fundamentals of Corporate Finance
ISBN: 978-1119371403
4th edition
Authors: Robert Parrino, David S. Kidwell, Thomas Bates
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