The Price Company will produce 55,000 widgets next year.Variable costs will equal 40 percent of sales, while operating fixed costs will total R110,000.At what price must each widget be sold for the company to achieve an EBIT of R95,000?

Question

Quizplus · Accepted Answer

The Answer of The Price Company will produce 55,000 widgets next year.Variable costs will equal 40 percent of sales, while operating fixed costs will total R110,000.At what price must each widget be sold for the company to achieve an EBIT of R95,000?

The Price Company Will Produce 55,000 Widgets Next Year