Your Uncle Is Considering Investing in a New Company That

question 57

Multiple Choice

Your uncle is considering investing in a new company that will produce high quality stereo speakers.The sales price would be set at 1.5 times the variable cost per unit; the variable cost per unit is estimated to be $75.00; and fixed costs are estimated at $1,200,000.What sales volume would be required to break even,i.e.,to have EBIT = zero?

• A)28,880
• B)30,400
• C)32,000
• D)33,600
• E)35,280

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