The sales price would be set at 15 times the variable cost


Your aunt is considering investing in a new company that will produce video games. The sales price would be set at 1.5 times the variable cost per unit; the variable cost per unit is estimated to be $7.50; and fixed costs are estimated at $120,0000. What sales volume would be required to break even, i.e., to have EBIT = zero?

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: The sales price would be set at 15 times the variable cost
Reference No:- TGS0618103

Expected delivery within 24 Hours