Senbet Ventures is considering starting a new company to produce stereos. The sales price would be set at 1.5 times the variable cost per unit; the VC/unit is estimated to be $2.50; and fixed costs are estimated at $120,000. What sales volume would be required in order to break even, i.e., to have an EBIT of zero for the stereo business?© BrainMass Inc. brainmass.com June 3, 2020, 10:56 pm ad1c9bdddf
The solution examines Senbet Ventures sales volume. The fixed cost is estimated.