A firm, which sells widgets, has annual fixed costs of $29,000,000. Each widget sells for $21 and takes $7 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? (Round up to answer nearest unit)

A firm, which sells widgets, has annual fixed costs of $29,000,000. Each widget sells for $21 and takes $7 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? (Round up to answer nearest unit)

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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Question

What is the number of widgets the firm must sell

A firm, which sells widgets, has annual fixed
costs of $29,000,000. Each widget sells for
$21 and takes $7 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? (Round
up to answer nearest unit)

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