Provide solution this accounting question ai answer not expected The Price Co. can make widgets for $5 and sell them for $8. If fixedcosts are $100,000, then how many widgets must they sell in orderto have an EBIT of $50,000?a) 30,000b) 50,000c) 100,000d) 150,000

Explanation: EBIT is calculated using the following equation:EBIT = [(Sale price per unit - Variable…

Answered: The Price Co. can make widgets for $5…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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