Consider the following income statement and answer the questions that follow Sales (100 units) ..... $200 Variable

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Consider the following income statement and answer the questions that follow

Sales (100 units) ..... $200

Variable costs ($.80 ea) .. 80

Fixed Costs ........ 20

EBIT .......... 100

Interest Expense ...... 30

EBT .......... 70

Income tax ....... 24

Net Income ....... 46

a. What is the firm’s Breakeven Point in units?

b. Draw a breakeven chart for this firm.

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Understanding financial statements

ISBN: 978-0136086246

9th Edition

Authors: Lyn M. Fraser, Aileen Ormiston

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Question Posted: Sep 15, 2012 07:05 AM

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Consider the following income statement and answer the questions that follow Sales (100 units) ..... $200 Variable

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a Computation of the Break Even point in units Break Even p...View the full answer

Understanding financial statements

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