Answered: Summit Manufacturing can make gadgets…

Summit Manufacturing can make gadgets for $6 and sell them for $10. If fixed costs are $120,000, how many gadgets must they sell to achieve an EBIT of $60,000? a) 30,000 b) 45,000 c) 50,000 d) 60,000

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

Provide correct answer this general accounting question

Summit Manufacturing can make gadgets for $6 and sell
them for $10. If fixed costs are $120,000, how many gadgets
must they sell to achieve an EBIT of $60,000?
a) 30,000
b) 45,000
c) 50,000
d) 60,000

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