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makvit [3.9K]
3 years ago
10

EBIT Sensitivity Stewart Industries sells its finished product for $ 8.69 per unit. Its fixed operating costs are $ 20,500​, and

the variable operating cost per unit is $ 5.59.
a. Calculate the​ firm's earnings before interest and taxes​ (EBIT) for sales of 9,000 units.
b. Calculate the​ firm's EBIT for sales of 6,000 and 12,000 ​units, respectively.
c. Calculate the percentage changes in sales​ (from the 9,000​-unit base​ level) and associated percentage changes in EBIT for the shifts in sales indicated in part ​(b​).
d. On the basis of your findings in part ​(c​), comment on the sensitivity of changes in EBIT in response to changes in sales.
Business
1 answer:
BartSMP [9]3 years ago
4 0

Answer:

(23-16.97)*x=18630

6.03x=18630

x=3089.55

so they need to sell at least 3090 units

Explanation:

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Aneli [31]

Answer:

Explanation:

Businesses can be affected by various environmental facors as political, economic, social and technological facors (PEST). All of these factors influence the decision making within the organization.

Let's briefly describe each of the factors:

1. Political factors: In some countries there are subsidiaries and tax exemptions for running a particular businesses. For example, tax exemptions for those doing green business or producing electric cars. In order to adress such risks, business people should investigate about legislation and political environment of countries.

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8 0
3 years ago
Dan lives in Duncan, a small town in Arizona. Because of a rare blood disease, Dan is required to take special medical treatment
tester [92]

Answer:

$1,778

Explanation:

Mileage (12 trips x 400 miles x 0.235 per mile) $1,128

Lodging (12 trips x 50 per night max) $600

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Dan’s qualified medical total expense for the year$1,778

$1,128+$600+$50= $1,778

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3 0
3 years ago
A manufacturer sells his product at $23 per unit, selling all he produces. His fixed cost is $18,000 and his variable cost per u
svp [43]

Answer:

4000 Units

Explanation:

x = number of units made and sold

C(x) = cost

C(x) = 18.50x+18000

R(x) = revenue

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Breakeven point occurs when the cost and revenue are the same, which produces a profit of 0 dollars.

R(x) = C(x)

23x = 18.50x+18000

23x-18.50x = 18000

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x = 18000/(4.50)

x = 4000

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2 years ago
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mojhsa [17]

Answer:

The correct answer is (B)

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Liquidity preference theory emphasised on the interest which investors should demand on long-term investments due to the risk they carry. According to liquidity preference theory, a decrease in the price level shifts the money demand curve leftward. A leftward movement of the money demand curve increases the overall quantity demanded. In that regard, a decrease in interest rate increases the demand for goods and services demanded.

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C. Revising is always required or at least advised
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