The BowGus Archery Company management estimates that its new Galactically Flexible Bow project will have to generate

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The BowGus Archery Company management estimates that its new Galactically Flexible Bow project will have to generate EBIT of $20,000 each year to be viable. The project's fixed cash expenses are expected to equal $8,000 and its depreciation and amortization expenses are expected to be $5,000 each year. If the Galactically Flexible bows are expected to sell for $150 each and the variable cost to produce each bow is expected to be $100, then how many of these bows must the firm produce and sell each year to generate annual EBIT of $20,000?
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Related Book For  answer-question

Fundamentals of Corporate Finance

ISBN: 978-1118845899

3rd edition

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

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