Ali's Widgets Projected Income Statement for Widget Line Sales Variable Costs Fixed Costs Earnings Before Interest and Taxes (EBIT) Interest Expense Earnings Before Taxes Taxes Net Income Data Estimated Sales in Units Price per Unit Variable Cost per Unit Fixed Cost Interest Expense Tax Rate Operating Break-even Points Units Resulting Sales at Break-Even Target Level of EBIT Unit Sales Needed to Reach Target EBIT 2,800 $135 $65 $125,000 $15,000 25% $18,000 0 Total Points 10 Points 10 Points

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Ali's Widgets
Projected Income Statement for Widget Line
Sales
Variable Costs
Fixed Costs
Earnings Before Interest and Taxes (EBIT)
Interest Expense
Earnings Before Taxes
Taxes
Net Income
Data
Estimated Sales in Units
Price per Unit
Variable Cost per Unit
Fixed Cost
Interest Expense
Tax Rate
Operating Break-even Points
Units
Resulting Sales at Break-Even
Target Level of EBIT
Unit Sales Needed to Reach Target EBIT
2,800
$135
$65
$125,000
$15,000
25%
$18,000
0
Total Points
10 Points
10 Points
Transcribed Image Text:Ali's Widgets Projected Income Statement for Widget Line Sales Variable Costs Fixed Costs Earnings Before Interest and Taxes (EBIT) Interest Expense Earnings Before Taxes Taxes Net Income Data Estimated Sales in Units Price per Unit Variable Cost per Unit Fixed Cost Interest Expense Tax Rate Operating Break-even Points Units Resulting Sales at Break-Even Target Level of EBIT Unit Sales Needed to Reach Target EBIT 2,800 $135 $65 $125,000 $15,000 25% $18,000 0 Total Points 10 Points 10 Points
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