Economic break-even point

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Reference no: EM131491012

Economic break-even point: The BowGus Archery Company management estimates that its new Galactically Flexible Bow project will have to generate EBIT of $20,000 each year to be viable. The project's fixed cash expenses are expected to equal $8,000, and its depreciation and amortization expenses are expected to be $5,000 each year. If the Galactically Flexible bows are expected to sell for $150 each and the variable cost to produce each bow is expected to be $100, then how many of these bows must the firm produce and sell each year to generate annual EBIT of $20,000?

Reference no: EM131491012

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Economic break-even point : he BowGus Archery Company management estimates that its new Galactically Flexible Bow project will have to generate EBIT of $20,000 each year to be viable.

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