Problem:
Your uncle is considering investing in a new company that will produce high quality stereo speakers. The sales price would be set at 1.70 times the variable cost per unit; the variable cost per unit is estimated to be $75.00; and fixed costs are estimated at $1,030,000.
Required:
Question: What sales volume would be required to break even, i.e., to have EBIT = zero?
- 17,069
- 16,088
- 20,992
- 22,562
- 19,619
Note: Please show how you came up with the solution.