Target EBIT: variable costs of 60K units half of sales, and

[tanyaw]

Millman Electronics will produce 60,000 stereos next year. Variable costs will equal 50% of sales, while fixed costs will total $120,000. At what price must each stereo be sold for the company to achieve an EBIT of $95,000?

Thanks to anyone who can help.

Tanya

 

[Denis]

Hint: ? - 120000 = 95000