Unit price and ebit
Question:
The Clearwater Aquarium Company will produce 66,000 10-gallon aquariums next year. Variable costs are 40% of sales while fixed costs total $133,200. At what price must each aquarium be sold for Clearwater to obtain an EBIT of $114,000?
Now Priced at $20 (50% Discount)
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At what price must each aquarium be sold for Clearwater to obtain an EBIT of $114,000?
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