The sales price would be set at 15 times the variable cost

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Reference no: EM13391941

Your uncle is considering investing in a new company that will produce high quality stereo speakers. The sales price would be set at 1.5 times the variable cost per unit; the variable cost per unit is estimated to be $75.00; and fixed costs are estimated at $1,200,000. What sales volume would be required to break even, i.e., to have EBIT = zero?

a. 28,880

b. 30,400

c. 32,000

d. 33,600

e. 35,280

Reference no: EM13391941

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