Finance/Business Math

[Khole]

Millman Electronics will produce 60,000 stereos next year. Variable costs will equal 50% of sales, while fixed costs will total $120,000. At what price must each stereo be sold for the company to achieve an EBIT of $95,000?

 

[matt71]

Here you go. It's all algebra. For the company to clear the EBIT, they'd actually need to sell each unit for $7.17

 

[Denis]

What d'heck does EBIT mean?
$7.17 for a stereo makes little sense :shock:

 

[Deleted member 4993]

What d'heck does EBIT mean? Earning Before Imputed Tax ?????
$7.17 for a stereo makes little sense :shock: <<<< You have not shopped at Time Square yet???