The Price Company will produce 55,000 widgets next year.Variable costs will equal 40 percent of sales,while operating fixed costs will total $110,000.At what price must each widget be sold for the company to achieve an EBIT of $95,000?
A) $2.00
B) $4.45
C) $5.00
D) $5.37
E) $6.21

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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 $110,000.At what price must each widget be sold for the company to achieve an EBIT of $95,000?
A) $2.00
B) $4.45
C) $5.00
D) $5.37
E) $6.21

The Price Company Will Produce 55,000 Widgets Next Year