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    Capital Structure and Leverage for Millman Electronics

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

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    Solution Preview

    Given that,
    Number of stereos produced=60,000
    Variable cost=50% of ...

    Solution Summary

    The solution examines capital structure and leverage for Millman Electronics.The price each widget must be sold for is determined.