Question: Distinguish between business risk and financial risk. What each type of risk?
2. (Break-even point and selling price) Tenny Inc. is planning to sell 50,000 units of its products next year. Fixed costs will total €6 million, and the variable costs are planned to be 60 percent of the sales.
a. The firm wants to achieve a level of EBIT of €400,000. What selling price per unit is necessary to achieve this result?
b. Set up an analytical income statement to verify your solution to part (a).