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Unformatted text preview: alculate Mollycait’s operating breakeven point.
b. Calculate Mollycait’s EBIT on the department store order.
c. If Molly renegotiates the contract at a price of $10.00, what will the
d. If the store refuses to pay more than $8.00 per unit but is willing to
negotiate quantity, what quantity of figurines will result in an EBIT of
e. At this time, Mollycaits come in 15 different varieties. Whereas the average
variable cost per unit is $6.00, the actual cost varies from unit to unit.
What recommendation would you have for Molly and Caitlin with
regard to pricing and/or the numbers and types of units that they offer
for sale? LG2 12–7 EBIT sensitivity Stewart Industries sells its finished product for $9 per unit.
Its fixed operating costs are $20,000, and the variable operating cost per unit
a. Calculate the firm’s earnings before interest and taxes (EBIT) for sales of
b. Calculate the firm’s EBIT for sales of 8,000 and 12,000 units, respectively.
c. Calculate the percentage changes in sales (...
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