Warrens hats forecasts that it will sell 25000 baseball, Finance Basics

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Warrens hats forecasts that it will sell 25000 baseball

Question: Warren's Hats forecasts that it will sell 25,000 baseball caps next year. The company buys its caps for $3 from the wholesaler and sells them for $15 each. If the company will incur fixed costs plus depreciation and amortization of $80,000, then what is the percentage increase in EBIT if the actual sales next year equal 27,000 caps?

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Finance Basics: Warrens hats forecasts that it will sell 25000 baseball

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