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Prinx Ltd. can make gadgets for $6 and sell them for $10. If fixed costs are $120,000, then how many gadgets must they sell in order to have an EBIT of $60,000? a) 40,000 b) 45,000 c) 50,000 d) 60,000

Prinx Ltd. can make gadgets for $6 and sell them for $10. If fixed costs are $120,000, then how many gadgets must they sell in order to have an EBIT of $60,000? a) 40,000 b) 45,000 c) 50,000 d) 60,000

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 7EB: Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are...
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Prinx Ltd. can make gadgets for $6 and sell them for $10. If fixed costs are $120,000, then how many gadgets must they sell in order to have an EBIT of $60,000? a) 40,000 b) 45,000 c) 50,000 d) 60,000
Transcribed Image Text:Prinx Ltd. can make gadgets for $6 and sell them for $10. If fixed costs are $120,000, then how many gadgets must they sell in order to have an EBIT of $60,000? a) 40,000 b) 45,000 c) 50,000 d) 60,000
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