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Capital Structure and Dividend Policy

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Millman Electronics will produce 60,000 stereos next year. Variable costs will equal 50% of sales, while fixed costs will total $120,000. At what price must each stereo be sold for the company to achieve an EBIT of $95,000?

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The solution shows calculations of price per unit required to earn expected profit.

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please see the response to your posting as below:

Contribution required to archive EBIT of $95000 ...

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