EX9_CB_Under_Uncertainty-EXX

# EX9_CB_Under_Uncertainty-EXX - Q1 Henning Corporation...

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Q1. Henning Corporation produces a single product, which it sells for \$30 per unit. Its variable operating costs are \$15; and its fixed operating costs are \$3,000,000. P = \$30 \$5,730,000 FC = \$3,000,000 \$2,865,000 VC = \$15 Qbe = \$200,000 0.00 Q1(a) Find the EBIT for the following sales volume: Units PROB EBIT 191,000 0.04 (\$135,000) (\$135,000) 192,000 0.04 (\$120,000) (\$120,000) 193,000 0.04 (\$105,000) (\$105,000) 194,000 0.04 (\$90,000) 195,000 0.04 (\$75,000) 196,000 0.04 (\$60,000) 197,000 0.04 (\$45,000) 198,000 0.04 (\$30,000) 199,000 0.04 (\$15,000) 200,000 0.04 \$0 201,000 0.04 \$15,000 202,000 0.04 \$30,000 203,000 0.04 \$45,000 204,000 0.04 \$60,000 205,000 0.04 \$75,000 206,000 0.04 \$90,000 207,000 0.04 \$105,000 208,000 0.04 \$120,000 209,000 0.04 \$135,000 210,000 0.04 \$150,000 211,000 0.04 \$165,000

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212,000 0.04 \$180,000 213,000 0.04 \$195,000 \$195,000 214,000 0.04 \$210,000 \$210,000 215,000 0.04 \$225,000 \$225,000 Q1(b) Based on the EBIT obtained in part (a), calculate the following statistics: Maximum \$225,000 \$225,000 Average \$45,000
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EX9_CB_Under_Uncertainty-EXX - Q1 Henning Corporation...

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