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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