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 1.5 times the variable cost per unit; the variable cost per unit is estimated to be $75.00; and fixed costs are estimated at $1,200,000.What sales volume would be required to break even,i.e.,to have EBIT = zero?

A) 28,880
B) 30,400
C) 32,000
D) 33,600
E) 35,280