The Yellow Shelf Company sells all of its shelves for $100 per shelf, and incurs $50 in

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The Yellow Shelf Company sells all of its shelves for $100 per shelf, and incurs $50 in variable costs to produce each. If the fixed costs for the firm are $2,000,000 per year, what will the EBIT for the firm be if it produces and sells 45,000 shelves next year? Assume that depreciation and amortization is included in the fixed costs?
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Fundamentals of Corporate Finance

ISBN: 978-1118845899

3rd edition

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

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