Your Uncle Is Considering Investing in a New Company That

Multiple Choice

Your uncle is considering investing in a new company that will produce high quality stereo speakers.The sales price would be set at 1.70 times the variable cost per unit;the variable cost per unit is estimated to be $75.00;and fixed costs are estimated at $1,170,000.What sales volume would be required to break even,i.e. ,to have EBIT = zero?

A) 23,400
B) 25,851
C) 18,051
D) 17,160
E) 22,286