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April 17, 2014

Homework Help: Bus Finance

Posted by Casonya on Thursday, May 17, 2012 at 9:40pm.

Consider the following income statement and answer the questions that follow:

Sales (100 units) $200
Variable costs ($.80 ea) 80
Fixed Costs 20
EBIT 100
Interest Expense 30
EBT 70
Income tax 24
Net Income 46

a. What is the firmís Breakeven Point in units?
Draw a breakeven chart for this firm.

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