Shawn is considering opening a music store. He wants to estimate the n

QUESTION

Shawn is considering opening a music store. He wants to estimate the number of CDs he must sell to break even. The CDs will be sold for $13.98 each, variable operating costs are $10.48 per CD, and annual fixed operating costs are $73,500. How much EBIT will Shawn realize if he sells the minimum 2,00
Selling Price perCD $13.98 Variable Operating Cost perCD $10.48 Annual Fixed OperatingCost $73,500 Number of CDs sells permonth 2,000 CDs Annual Sales (2,000 CDs * 12Months) 24,000 CDs IncomeStatement Annual Sales (24,000CDs *$13.98) $335,520.00

ess: Variable Cost (24,000CDs *$10.48) ($251,520.00) Less: annual fixed operatingcosts ($73,500.00) ($325,020.00) Earnings Before Interest& Taxes (EBIT) $10,500.00

ANSWER:

CLICK REQUEST FOR  AN EXPERT SOLUTION