Answer: $12
Explanation:
The reasonable production cost for a backpack in this segment will be calculated as 50% multiplied by the average retail price which will be:
= 50% × $24
= 50/100 × $24
= 0.5 × $24
= $12
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Answer:
option b. EBIT is more sensitive to changing sales levels; it increases/decreases about twice as much as sales.
A Change in Sales the will lead to a great change in EBIT
that is for a percent change in sales, will lead to a greater change in EBIT
Explanation:
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