WalkAbout Kangaroo Shoe Stores forecasts that it will sell 9,500 pairs of shoes next year. The firm buys its shoes for $50 per pair from the wholesaler and sells them for $75 per pair. The firm will incur fixed costs plus depreciation and amortization of $100,000. What is the percent increase in EBIT if the actual sales next year equal 11,500 pairs of shoes instead of 9,500?

Entrepreneurial Finance
6th Edition
ISBN:9781337635653
Author:Leach
Publisher:Leach
Chapter13: Other Financing Alternatives
Section: Chapter Questions
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Provide correct answer general accounting

WalkAbout Kangaroo Shoe Stores forecasts that it will
sell 9,500 pairs of shoes next year. The firm buys its
shoes for $50 per pair from the wholesaler and sells
them for $75 per pair. The firm will incur fixed costs
plus depreciation and amortization of $100,000.
What is the percent increase in EBIT if the actual sales
next year equal 11,500 pairs of shoes instead of
9,500?
Transcribed Image Text:WalkAbout Kangaroo Shoe Stores forecasts that it will sell 9,500 pairs of shoes next year. The firm buys its shoes for $50 per pair from the wholesaler and sells them for $75 per pair. The firm will incur fixed costs plus depreciation and amortization of $100,000. What is the percent increase in EBIT if the actual sales next year equal 11,500 pairs of shoes instead of 9,500?
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