Compus subsidiary cellu is expanding its cell phone line, Ask an Expert

Accounting

CompU's subsidiary, CellU, is expanding its cell phone line to include cell phone cases. The cases will be sold for $20 each, have a variable operating cost of $13 per case, and annual fixed operating costs of $70,000.

a. What is the operating breakeven point of the cell phone cases?

b. find out the total operating costs at the breakeven point.

c. If CellU can sell 20,000 cell phone cases per year, how much EBIT will CellU realize on the cases?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M945997

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