WalkAbout Kangaroo Shoe Stores management forecasts that it will sell 9,500 pairs of shoes next year. The

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WalkAbout Kangaroo Shoe Stores management forecasts that it will sell 9,500 pairs of shoes next year. The firm buys its shoes for $50 per pair from the wholesaler and sells them for $75 per pair. If the firm will incur fixed costs plus depreciation and amortization of $100,000, then what is the percent increase in EBIT if the actual sales next year equal 11,500 pairs of shoes instead of 9,500?

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Fundamentals of Corporate Finance

ISBN: 978-1119371403

4th edition

Authors: Robert Parrino, David S. Kidwell, Thomas Bates

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