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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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