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?
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?
Chapter13: Other Financing Alternatives
Section: Chapter Questions
Problem 1bM
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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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