A firm, which sells widgets, has annual fixed costs of $10,000,000. Each widget sells for $10 and takes $6 in variable costs to manufacture. If sales volume last year was $30,000,000, what is the number of widgets the firm must sell to have EBIT = 0?

A firm, which sells widgets, has annual fixed costs of $10,000,000. Each widget sells for $10 and takes $6 in variable costs to manufacture. If sales volume last year was $30,000,000, what is the number of widgets the firm must sell to have EBIT = 0?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 10E: Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22...

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Need answer the question

A firm, which sells widgets, has annual fixed costs of
$10,000,000. Each widget sells for $10 and takes $6 in
variable costs to manufacture. If sales volume last year
was $30,000,000, what is the number of widgets the
firm must sell to have EBIT = 0?

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A firm, which sells widgets, has annual fixed costs of $16,000,000. Each widget sells for $13 and takes $8 in variable costs to manufacture. If sales volume last year was $30,000,000, what is the number of widgets the firm must sell to have EBIT = 0? NO WRONG ANSWER
What is the number of widgets the firm must sell to have EBIT
and takes to A firm, which sells widgets, has annual fixed costs of $16,000,000. Each widget sells for $13 $8 in variable costs manufacture. If sales volume last year was $30,000,000, what is the number of widgets the firm must sell to have EBIT = 0?
ANSWER
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