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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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    Contribution required to archive EBIT of $95000 ...

    Solution Summary

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