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Break even in terms of EBIT

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3. Canvas Reproductions has fixed operating cost of $12,500, variable operating costs of $10 per unit and it sells paintings for $25 each. At what level of unit sales will the company break even in terms of EBIT

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Solution Summary

The solution explains how to calculate the level of unit sales at which the company will break even in terms of EBIT.

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Breakeven units = Fixed cost/Unit contribution margin
Unit contribution margin = ...

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