Welker Products sells small kitchen gadgetsfor $15 each. The gadgets have a variable cost of $4 per unit, and WelkerProducts' fixed operating costs are $220,000 per year. Welker Products' capitalstructure includes 55% debt and 45% equity. Annual interest expense is $25,000,and the corporate tax rate is 35%.
17. Calculate the break-even point inunits.
18.If Welker Products sells 25,000 units, calculate the firm's EBIT