Don't want ai answer A firm, which sells widgets, has annual fixedcosts of $16,000,000. Each widget sells for$13 and takes $8 in variable costs tomanufacture. If sales volume last year was$30,000,000, what is the number of widgetsthe firm must sell to have EBIT = 0?

Step 1: Given Value for Calculation Fixed Cost = fc = $16,000,000Selling Price per Widget = sw =…

Answered: A firm, which sells widgets, has annual…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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?