Problem:
The Poseidon Swim company produces swim trunks. The average selling price for one of their swim trunks is $38. The variable cost per unit is $25. Poseidon swim has average fixed costs per year of $35,194.
Requirement:
Assume the current level of sales is 5,328 units. What will the resulting percentage change in EBIT if they expect units so;d to be increased by 4 percent.
Note: Please show how you came up with the solution.