The Price Co. can make widgets for $5 and sell them for $8. If fixed costs are $100,000, then how many widgets must they sell in order to have an EBIT of $50,000? a) 30,000 b) 50,000 c) 100,000 d) 150,000

Principles of Accounting Volume 2
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ISBN:9781947172609
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Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 8EB: Shonda & Shonda is a company that does land surveys and engineering consulting. They have an...
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The Price Co. can make widgets for $5 and sell them for $8. If fixed
costs are $100,000, then how many widgets must they sell in order
to have an EBIT of $50,000?
a) 30,000
b) 50,000
c) 100,000
d) 150,000
Transcribed Image Text:The Price Co. can make widgets for $5 and sell them for $8. If fixed costs are $100,000, then how many widgets must they sell in order to have an EBIT of $50,000? a) 30,000 b) 50,000 c) 100,000 d) 150,000
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