Demonstrate what will be resulting percentage change in ebit

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The Poseidon Swim Company produces swim trunks. The average selling price for one of their swim trunks is $86.63. The variable cost per unit is $21.53, Poseidon Swim has average fixed costs per year of $6,073.

Problem 1: Assume that current level of sales is 446 units. What will be the resulting percentage change in EBIT if they expect units sold to changes by -2.9 percent?

Reference no: EM132722125

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