A new company to produce state-of-the-art car stereo


A new company to produce state-of-the-art car stereo systems is being considered by Jagger Enterprises. The sales price would be set at 1.6 times the variable cost per unit; the VC/unit is estimated to be $4.50; and fixed costs are estimated at $250,000. What sales volume would be required in order to have an EBIT of $300,000 for the stereo business?

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Financial Management: A new company to produce state-of-the-art car stereo
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