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Problem - You are given the following information about a company that sells golf clubs.
Estimated club sales in units 30,000
Price per club 450,00
Variable cost% of sales 60%
Fixed costs 1,000,000
Interest expense 550,000
Tax rate 30%
Required - What price would the company have to charge per club to get a zero EBIT? Assume variable cost per unit will be 60% of price per unit and all other inputs don't change if price per unit changes.
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