What is ebit break-even point for number of games

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Reference no: EM132010939

1. A maker of computer games expects to sell 600,000 games at a price of $46 per game. These units cost $15 to produce. Selling, general, and administrative expenses are $1.3 million and depreciation is $300,000. What is the EBIT break-even point for the number of games sold in this case?

A. $34,783

B. $86,667

C. $41,935

D. $51,613

2. You are about to participate in a private value auction. There will be a total of 10 rational participants in the auction. You have been informed by a higher being that, of the 10 participants, you have the highest private valuation. In which type of auction you are the most likely to win the auction?

a. In a Dutch auction.

b. In a 1st price, sealed bid auction.

c. In an English auction.

d. It depends on the value of the object.

e. It cannot be determined.

Reference no: EM132010939

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