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Problem:

Senbet Ventures is considering starting a new company to produce stereos. The sales price would be set at 1.5 times the variable cost per unit; the VC/unit is estimated to be $2.50; and fixed costs are estimated at $120,000.

Required:

Question: What sales volume would be required in order to break even, i.e., to have an EBIT of zero for the stereo business?

86,640
91,200
96,000
100,800
105,840

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91171977

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