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Level of earnings before interest

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Surf Bicycles Inc. will manufacture and sell 250,000 units next year. Fixed costs will total $600,000, and variable costs will be 60% of sales. The bicycles will sell for $200 each.

The firm wants to achieve a level of earnings before interest and taxes of $250,000. How many units must they sell to achieve that result?

Reference no: EM131861962

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