Question: Stevens Hats management forecasts that it will sell 25,000 baseball caps next year. The firm buys its caps for $3 from the wholesaler and sells

Steven’s Hats management forecasts that it will sell 25,000 baseball caps next year. The firm buys its caps for $3 from the wholesaler and sells them for $15 each. If the firm will incur fixed costs plus depreciation and amortization of $80,000, then what is the percent increase in EBIT if the actual sales next year equal 27,000 caps?

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The forecasted EBIT for the firm is Revenue 15 25000 37500... View full answer

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