Jupitor Surf Boards has annual fixed costs of $5,000 with a variable cost of $10 per unit and a sales price of $20 per unit.Jupitor expects to sell 1,000 units this year without much trouble.However,Jupitor is concerned about the scenario that all costs will increase 10% this year.If that happens,what will be Jupitor's earnings before interest and taxes?
A) $6,000
B) $5000
C) $4,000
D) $3,500
Correct Answer:
Verified
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